- White House economic advisor Larry Kudlow said Sunday that he doesn’t think an economic recovery is “dependent” on passing the next coronavirus stimulus package.
- Kudlow’s remarks contradict pleas from Fed Chair Jay Powell, who warned on Tuesday that the economy might falter if another stimulus package doesn’t make it through Congress.
- The next stimulus package remains stalled in Congress, as Democrats and Republicans continue to hammer out details of the plan.
- Visit Business Insider’s homepage for more stories.
White House economic advisor Larry Kudlow said Sunday that he doesn’t think an economic recovery is “dependent” on passing the next coronavirus stimulus package, contrary to the guidance put out by the Federal Reserve.
“I don’t think the recovery is dependent on it,” Kudlow said on CNN’s “State of the Union.” Kudlow went on, explaining why he thinks the potential lack of another stimulus bill will not tank the economy.
“We’ve seen numbers across the board, just in the past week: booming housing starts, supply management for manufacturing and for services. We’ve seen automobiles surging,” he said.
“We’ve created…700,000 jobs in manufacturing,” he continued. “These are really strong numbers.”
—State of the Union (@CNNSotu) October 11, 2020
Kudlow’s remarks contradict pleas from Fed Chair Jay Powell, who warned on Tuesday that the economy might falter if another stimulus package doesn’t make it through Congress.
“Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell said in a speech. Powell has consistently urged Congress to pass a stimulus package to help the economy recover from the devastation brought on by the coronavirus.
The next stimulus package remains stalled in Congress, as Democrats and Republicans continue to hammer out the details of the plan. House Democrats passed a $2.2 trillion stimulus plan earlier this month, but Sen. Majority Leader Mitch McConnell, R-Kentucky, called the amount “outlandish” and said the two parties remain “very, very far apart on a deal.”
Other economists also agree that a stimulus is instrumental to propping up the economy.
“State of the Union” host Jake Tapper told Kudlow that Mark Zandi, chief economist at Moody’s Analytics said “the country is going to start shedding jobs again” if a coronavirus stimulus bill isn’t passed soon.
“Well, Mark is a friend of mine, but he’s always a naysayer when it comes to Republican policy,” Kudlow replied.
“We are in a strong rebound,” he continued. “Businesses are reopening. We are learning to deal with the virus in a targeted, safe, prevented way.”
The coronavirus has infected more than 7.7 million people nationwide, according to the latest data compiled by Johns Hopkins University. Of that, more than 214,000 people have died from the disease.