The US economy is rebounding “very, very strongly,” and fresh federal aid will reach unemployed Americans in the next week or 2, White House economic adviser Larry Kudlow said Wednesday, shaking off concerns about a 2nd wave of C-19 coronavirus infections.
Mr. Kudlow, speaking to reporters at the White House, defended a reduction in the unemployment supplement to $300 from $600, saying all aid/relief/stimulus measures should be reduced slowly as the economy strengthens.
“I think the economy is on a self-sustaining recovery and it’s a V-shaped recovery,” he said. “We are seeing terrific numbers.”
Asked about concerns that a 2nd wave of coronavirus infections this Fall and Winter could derail the recovery, Mr. Kudlow said: “The hope is that the decline in cases and fatalities will continue. That’s the great hope,” (and there is no 2nd wave).
He said the number of infections should continue to decline since more Americans were now using face masks, maintaining social distancing and regularly washing their hands.
The US Centers for Disease Control and Prevention (CDC) Wednesday reported 5,460,429 cases of the novel coronavirus in the country, an increase of 39,318 from its prior count.
Mr. Kudlow said the White House is looking at different ways to ensure that the payroll tax cut called for by President Trump would be forgiven.
“As far as the payback is concerned, … you could stretch that out over a long period of time,” he told reporters. “So the payback will not be immediate and no one will be hurt.”
He said the payback could occur over 5-8 yrs since the budget window was 10 yrs. The amount in question was roughly $1,100 per worker for 4 months, he said.
Have a healthy day, Keep the Faith!