WASHINGTON (Reuters) – The U.S. economy is rebounding “very, very strong”, and fresh federal aid will reach unemployed Americans in the next week or two, White House economic adviser Larry Kudlow said on Wednesday, shaking concerns about a second wave of COVID-19 infections.
Kudlow, speaking to White House reporters, defended a reduction in the unemployment supplement to $ 300 from $ 600, and said incentives should be gradually reduced as the economy strengthens.
“I think the economy is on an independent recovery and it is a V-shaped recovery,” he said. “We see great numbers.”
Asked about concerns that a second wave of coronavirus infections could derail recovery this fall and winter, Kudlow said: “The hope is that the decline in cases and deaths will continue. That is the great hope.”
He said the number of infections should continue to decrease as more Americans now use face masks, maintain social distance and wash their hands regularly.
The U.S. Centers for Disease Control and Prevention (CDC) on Wednesday reported 5,460,429 cases of the new coronavirus in the country, an increase from 39,318 from its previous count, and said the death toll had risen from 1,172 to 171,012.
Kudlow said the White House was looking for several ways to ensure that the tax cuts demanded by President Donald Trump would be forgiven.
“As far as repayment is concerned … you can extend that over a long period of time,” Kudlow told reporters. “That repayment will not be immediate and no one will be hurt.”
He said the repayment could happen in five to eight years since the budget window was 10 years. The amount in question four months ago was about $ 1,100 per worker, he said.
(Report by Andrea Shalal and Tim Ahmann; Edited by Sandra Maler and Aurora Ellis)
