‘I still think the V-shaped recovery is in place,’ White House economic adviser Larry Kudlow said Sunday.
Photo: Tom Williams/CQ Roll Call/Zuma PressPresident Trump’s top economic advisers say they still expect a rapid economic recovery despite surges in new coronavirus infections that have rattled consumers and led to new limits on business activity.
“I still think the V-shaped recovery is in place,” White House economic adviser Larry Kudlow said Sunday. “I don’t deny that some of these hot-spot states are going to moderate that recovery, but on the whole the picture is very positive.”
Mr. Kudlow pointed to data last week showing that sales of existing homes jumped 20.7% in June after dropping 9.7% the month before, and another report showing that manufacturing in July expanded for the first time since February.
A government report on Thursday showed that filings for weekly unemployment benefits rose for the first time in nearly four months in the week ended July 18, a sign the jobs recovery could be faltering as some states rolled back reopenings because of the coronavirus pandemic.
But the report also showed that unemployment rolls have shrunk in recent weeks, suggesting that new layoffs are being offset by hiring and employers recalling workers, though at a slower pace than a few weeks ago.
“I do think the odds favor a big increase in jobs creation and a big reduction in unemployment” for July, Mr. Kudlow said on CNN’s “State of the Union.”
Federal Reserve officials are set to discuss next week how to provide more economic stimulus, though they have signaled comfort leaving policy on hold until they learn more about how the pandemic is weighing on the economy.
Treasury Secretary Steven Mnuchin, speaking on Fox News’ “Fox News Sunday,” said Republicans would introduce their proposal for the next coronavirus relief bill on Monday and were prepared to act quickly to strike a deal with Democrats.
The U.S. registered a further 65,490 infections and 914 deaths on Saturday, according to data compiled by Johns Hopkins University. Mississippi reported a record 1,434 new cases Saturday, with its seven-day average more than quadrupling from a month ago.
“We always said the second quarter was going to be a very bad quarter, again that’s not for economic reasons, that’s for health reasons,” Mr. Mnuchin said Sunday.
“So we do think you’re going to see a very big rebound,” Mr. Mnuchin said, citing a consensus estimate for 17% economic growth at an annual rate in the third quarter.
Write to William Mauldin at william.mauldin@wsj.com
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