White House economic adviser Larry Kudlow said he expects the unemployment rate in the United States to return to single digits this month and growth in the third quarter to be 20% or more as the economy shifts. recovers from the recession caused by the pandemic.
“The key point I would make is that the economy is rebounding, it looks like a V-shaped recovery, and the recent news now is even better than a month ago,” Kudlow said in a virtual participation in a conference organized by the Council of the Americas.
His upbeat outlook contrasts with statements by several Federal Reserve officials who said this week that the rebound is slowing after a resurgence in coronavirus infections and that the US economy will not be able to fully recover until the virus is under control.
The number of Americans applying for unemployment benefits fell below the 1 million mark last week for the first time since the arrival of the coronavirus pandemic in the country, possibly because the expiration of an additional $ 600 subsidy discouraged many people from applying. aid.
Kudlow referred to the decline in orders as a sign that the job market is recovering. Asked whether the economy needs another round of stimulus, the adviser said President Donald Trump’s recent decrees should bring some relief.
These measures extend the improved unemployment benefits to a reduced level of up to $ 400 a week and extend the freeze on interest and payments on student loans. However, several economists said this week that these actions, which will likely face legal challenges, will have minimal impact on the economy.
Kudlow said bipartisan efforts to provide small business relief and more direct payments to households could also help, but noted that negotiations with Democrats are “stalled.”
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