Larry Kudlow: Health Experts Say There Is ‘No Second Coronavirus Spike’
RUSH TRANSCRIPT:
DOOCY: “We are back with a Fox Business alert on this Friday morning. Stock futures right now rallying looking to gain back some of yesterday’s big losses, Brian.”
KILMEADE: “I’m seasick. The Dow plunging more than 1,800 points, the worst day since mid-March, we keep setting records both ways. The NASDAQ losing 527 points and the S&P dropping 188 points, Ainsley.”
EARHARDT: “The losses came as Coronavirus cases spike in some parts of our country and investors fear a resurgence of the inflections.”
DOOCY: “Let’s bring in Larry Kudlow, director of National Economic Council, he joins us from the White House. So, Larry, some people said that the big sell-off yesterday was because there’s a spike in cases in a number of states, maybe there’s going to be a second wave. Was it that or was it the fact that we’ve had such a run-up in the stock market, people thought, ‘You know what? This might be a good time to take some profit.’”
KUDLOW: “It’s probably a little bit of both. Those are both good points. Look, I’m not the health expert, but on the so-called spike, I spoke to our health experts at some length last evening, they’re saying there is no second spike. Let me repeat that. There is no second spike. And Secretary Mnuchin said yesterday in testimony, and I totally agree, we are not going to shut down the economy. What you do have is certain spots are seeing a little bit of a jump up some small metropolitan areas are seeing it. The CDC and the health people are all over it, they’ve sent task forces out to deal with it. Nowadays we have much better equipment, much more experience, much more testing. I mean the testing itself has jumped up, so you’re going to get a little more positivity from that. But if you look nationally, the important point is the rate of increase of new cases is between 0-1%, its really flattened out. And with respect to fatalities it’s the same, it’s actually lower than that, it’s like 0 to half a percent. So if I can calm fears, again, I’m not the health expert. Ambassador Birx may be asked about it later today. Nonetheless, there is no emergency, there is no second wave. I don’t know where that got started on Wall Street.”
KILMEADE: “I tell you, I love the fact that Sec of Treasury Mnuchin says not another shutdown regardless. Meanwhile, let’s talk about you have money left from the PPP program so there’s a lot of concern that the time is up and they’re going to turn into a loan instead of a grant. So what are the changes to the p pp program and tax credits that you could tell the American people about?”
KUDLOW: “Well two changes from the legislation the president signed last Friday and by the way let’s not forget last Friday we had an incredible increase of 3 million Jobs plus the lower unemployment rate, which shows that the reopening is moving into economic rebound. Now having said that, there’s about I don’t know, 100 billion plus left in the paycheck protection program. They’ve done a remarkable job getting it out in fact Congressional Budget Office cit ed for efficiency in getting these things out. There is about 100 billion left. I think they extended it the congressional legislation extended it I believe from eight weeks to 24 weeks, and with respect to allocation of the loans, which probably will be forgiven, you’ve got 60% now, allocated to payrolls, so 40% can go to other expenses, which are important. I think it was a constructive change that the president did favor.”
EARHARDT: “So larry, you mentioned the increase of 3 million Jobs with the last jobless claims report. When do you expect that we will rebound? Will that be before the election , rebound to where we were before corona?”
KUDLOW: “Well look there’s so many green shoots popping up in terms of early recovery that’s what’s given us a much more optimistic feeling. I mean, not all is well yet. I get that. There’s still a lot of heartbreak. You’ve still got a lot of people unemployed so there’s a lot of heartburn on that and that’s going to be a problem, but, but, but, but, let me say whether it’s the Apple mobility index which shows more people traveling by car, whether it’s new business applications which are soaring, businesses are open , automobile demand is strong, housing demand is off the charts right now back to pre-pandemic levels. There are a number of these green shoots that suggest number one, we are reopening, number two, the payroll protection program did work, so what you got instead of 18 million people , on temporary layoffs it dropped to 15 million people, 3 million people went back to work. Looking at this now, I think virtually, 100% or 90 percent of small businesses will reopen in the next month. The number is 80% according to the chamber of commerce. That hasn’t been scored yet, so when we get the June figures in July, I’m looking for another decline in unemployment and another big increase in employment and I see no reason why this cannot, you know, journal itself through. We are looking for 20% economic growth in the second half of the year. We referenced the Congressional Budget Office there too. They are seeing similar numbers, and a very strong 2021, and the president rebuilt this economy on lower taxes and deregulation once. Those things are still going to be in place. He can rebuild it again. We will probably have economic growth oriented legislative package next month when we come around to formal negotiations so I see the glass is way half full and I think America is going to take off again like a rocket, this hurricane, this bad snowstorm, this terrible pandemic virus is going to go away, and we will be okay, I mean, people have to keep their chins up I think.”
DOOCY: “All right, with an optimistic view from the White House, Larry Kudlow, larry thank you very much have a nice day.”
