Kudlow: US economy ‘off to the races’ for V-shaped recovery

White House economic adviser Larry Kudlow predicted a sharp economic recovery as a result of states restarting their economics despite the ongoing coronavirus pandemic, saying the U.S. was “off to the races.”

“I think, 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. Business applications, new business applications are roaring, tremendous demand for housing and homes. That’s new homes,” Kudlow told Fox’s Maria Bartiromo on Fox News’ “Sunday Morning Futures.” “I think we’re off to the races in what will be a very strong V-shaped recovery.”

Asked by Bartiromo about Federal Reserve Chair Jerome Powell’s projection that the recovery would likely be slower and longer for certain industries, Kudlow called Powell’s analysis “a little morose,” noting that the Federal Reserve’s “forecasts were pretty good for 2021. In fact, unemployment will probably drop below 10 percent before year-end.”

Kudlow added that “New York, for example, is now beginning to reopen. That’s a big chunk of GDP. I can predict you’re going to get gales of creative destruction.”

“I think the recovery has started, and it’ll be faster than almost anybody believes. That’s my view. And I think the president shares that view,” Kudlow said.

The same day, appearing on CNN’s “State of the Union,” Kudlow dismissed the need for extending the supplementary unemployment insurance that has paid out an additional $600 a week to those who have lost their jobs during the pandemic, calling it a “disincentive” for people to return to work.

Pressed by CNN’s Jake Tapper on some jobs not coming back even as states reopen, Kudlow responded “I think that’s a fair point. I personally agree with you. I think people want to go back to work. I think they welcome the reopening of the economy. I think they’re anxious to get out and about.”