White House economic adviser Larry Kudlow told CNBC on Monday that no “second wave” of coronavirus cases is expected and that lawmakers are likely to develop another stimulus package by the end of next month.
Asked by Squawk Box co-chair Becky Quick how he thinks about reopening Covid-19 in several states, Kudlow said he was not too concerned.
“The second wave does not come. These are just hot spots. They send CDC commands, we have testing procedures, we have diagnostics, we have PPE. And so I really think it’s a pretty good situation, “said Kudlow, director of the National Economic Council and chief economic adviser to President Donald Trump.
“In fact, I think that in the whole country the level of positivity is still quite low, much lower than 10%.”
His comments came after the United States reported more than 30,000 new infections on Friday and Saturday, the highest daily rate since May 1, according to Johns Hopkins University. There are new cases in states in the south, west and midwest, including Florida and South Carolina, which last week beat their one-day results for three consecutive days.
Health officials warn that upswings in new cases are appearing among young people who flock to bars and social events. The World Health Organization warned Friday that the pandemic has entered a “new and dangerous phase” as the disease worsens in new places around the world and spreads to areas that have begun to weaken protective rules.
But Kudlow repeated that the resurgence of national numbers is concentrated in several hot spots, including Florida, Arizona, and Nevada, and said he was not worried about the wider spread of the virus.
“There are some hot spots. We are on it. We know how to deal with it now, we have come a long way from last winter, ”he said.
Kudlow said the day after White House trade adviser Peter Navarro told CNN that the administration, in fact, getting ready to return to illness,
“We are filling up the stock in anticipation of a possible problem in the fall. We are doing everything we can, beneath the surface, working hard, ”Navarro told CNN. “You are preparing – you are preparing for what is possible” happens. I am not saying that this will happen, but, of course, you are getting ready. “
Kudlow also discussed the chances of another tax stimulus package from Congress and the White House.
Although no final decision on the content of any bill was made, it is “very likely” that the House, Senate and White House will agree on some forms of economic assistance after the July break, he added.
Kudlow listed a few things that Trump mentioned as possible points in a future bill on economic support.
“Things the president talked about publicly. He talked about tax holidays with wages for labor, he sometimes spoke about tax breaks for capital gains, ”said Kudlow.
“He wants to help with some form of tax exemption. Restaurants, entertainment, sports and the like, ”he added. “We want to help the tourism business, which has suffered greatly. We also want to reward people who return to work, who return to work. ”
Subscribe at CNBC PRO for exclusive analysis and analysis, as well as for programming direct working days from around the world.