National Economic Council Director Larry Kudlow said he expects the impact of the coronavirus pandemic will bring even more economic pain through June.
“The second quarter is going to be even worse, no question about it,” the White House top economic advisor said on “Squawk on the Street” on Friday (May 1). “The hardship issue is going to be even more difficult; it’s happening now.”
President Donald Trump’s top economic advisor said that January and February in the first quarter showed an annual run rate of 3.1 percent before COVID-19 brought growth to a halt.
But Kudlow was optimistic about the second half of the year. He said when the states reopen during the transition months of May and June, the nation will be ready to go.
“This economy will be poised to resume the strong growth Donald Trump’s policies have fostered,” Kudlow told host Jim Cramer. “We want folks to work, I think America wants to work.”
Cramer asked Kudlow if the administration has placed any limits on the amount of cash the federal government will pump into the economy or if is it willing to do whatever it takes to avoid another Great Depression.
“Early in his presidency, the president said he will use all the power of the federal government to help folks and businesses,” Kudlow said. “Now that we are moving forward, we are looking at policies that will provide growth incentives – not just more cash and liquidity, but actual growth incentives ... you can’t just close the door on necessary assistance programs, but you have to think through the best growth incentives for the medium and longer run for the economy."
Trump said on Thursday (April 30) that he was considering adding new tariffs on China due to the country’s handling of the outbreak. Critics have alleged that China failed to be transparent when the virus struck.
“With respect to future tariff decisions and other measures, that’s going to be up to the president,” Kudlow added.