National Economic Council Director Larry Kudlow responds on ‘Sunday Morning Futures’ to Federal Reserve Chair Jerome Powell warning of a long road to recovery amid COVID-19.
The U.S. economy is “off the the races” on a V-shaped recovery, White House economic adviser Larry Kudlow said on Sunday, despite more moderate predictions from other economic experts.
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“With the rescue package and the reopening of the economy as we transition, 80 percent of small businesses according to the Chamber of Commerce are reopening. … New business applications are roaring,” Kudlow told “Sunday Morning Futures.” “I think we’re off to the races in what will be a very strong V-shaped recovery.”
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Unemployment insurance claims have been down for 10 consecutive weeks and the May jobs numbers were better than expected, Kudlow said. An estimated 21 million Americans, however, are out of work.
In this photo taken June 4, 2020, a customer walks out of a U.S. Post Office branch and under a banner advertising a job opening, in Seattle. (AP Photo/Elaine Thompson)
Other experts have predicted a less rapid recovery. The economic recovery is more likely to be a “check mark” than a V-shaped recovery, Allianz Chief Economic Adviser Mohamed El-Erian said on Tuesday.
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“Every short-term indicator — mobility, travel, everything — is pointing to the economy picking up,” El-Erian told “Mornings with Maria.” “What is being debated, and rightly so, is the pace of recovery. And there is the view that it’s going to be a ‘V,’ or there’s a view it’s going to be a check mark, flatter in terms of how it comes back. I think it’s more of a check mark — hoping for a V — but it’s going to be more of a check mark because we have to fix a lot.”
