Single-Digit Unemployment Seen with 20% GDP Growth

#unemployment #GDP #growth #VShaped #recovery

Thursday, White House economic adviser Larry Kudlow said he expects the US unemployment rate to return to single-digit levels as early as this month and growth in Q-3 should be 20% or more as the economy recovers from the recession triggered by the C-19 coronavirus chaos.

“The Key point that I would make is the economy is rebounding, it looks like a V-shaped recovery and the recent news now is even better than it was a month ago,” Mr. Kudlow said in a virtual appearance at a conference hosted by the Council of the Americas.

His optimistic outlook contrasts with remarks from some Fed officials.

The number of Americans seeking unemployment benefits dropped below 1-M last week for the 1st time since mid-March.

Mr. Kudlow cited the drop in claims as a sign that the labor market is recovering.

When asked if the economy needs another round of stimulus, Mr. Kudlow said recent executive actions taken by President Trump should provide some relief.

These extend enhanced unemployment benefits at a reduced level of up to $400 a wk and continue a freeze on student loan interest and payments.

Mr. Kudlow said bipartisan efforts to provide help for small businesses and more direct payments to households could also help, but noted that negotiations with Democrats were at a “standstill.” 

Mr. Kudlow said President Trump’s efforts to give workers a break on payroll taxes will apply to self-employed individuals.

Have a healthy weekend, Keep the Faith!

#aid#C-19#coronavirus#Democrats#GDP#growth#President Trump#recovery#relief#stimulus#taxes#unemployment#V-shaped#Workers