Kudlow: Administration is on ‘pause’ before deciding on additional virus relief

By Sarah Cammarata

White House economic adviser Larry Kudlow on Sunday raised the possibility of another round of economic stimulus in the wake of the coronavirus, but noted some private forecasters and even the Congressional Budget Office predict “one of the fastest growth rebounds” in U.S. history.

“There may well be additional legislation. There’s kind of a pause period right now,” Kudlow said on CNN’s "State of the Union," in response to a question from host Jake Tapper about the need for a new Phase 4 stimulus bill.

Kudlow said the White House will monitor “how it’s doing,” as the country starts to gradually reopen its economy, quickly adding, “we probably will have some ideas.”

The economic adviser said “perhaps” states will see more funding, although the administration has already, “poured hundreds of billions into the states. … We'll wait and see.”

While the administration recognizes that “tremendous hardships” are felt across the nation and that “it's going to be very difficult in the months ahead,” Kudlow noted forecasters are predicting that 2021 will see a hearty rebound.

“Next year could be one of the fastest growth rebounds in American history or recent history," he said. "We're trying to get from, you know, from one side to the other. … I don't want to rule in or out anything right now.”

Pressing further, Tapper asked why the White House is not taking more immediate, aggressive action, amid massive unemployment and other economic fallout from the pandemic.

“We have to execute the last package. And the numbers are very strong. These are the small-business loans,” Kudlow said.

“One hundred seventy-five million Americans have received federal assistance in one form or another. That includes the direct checks, of course, and the unemployment compensation and the small business assistance,” he continued.

Now, he said, administration will “see what the results are,” citing “generous relief packages.”

Kudlow agreed there’s a “real need,” in response to a question related to the Small Business Administration’s Paycheck Protection Program, but didn't say if more money would be pumped into the program.

“We haven’t made a decision. … I don’t want to rule it out,” he said.