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Trump Advisers Remain Optimistic on V-Shaped Economic Recovery Amid Rising Coronavirus Cases

Strategic Insights

— 1 min read

Two of President Donald Trump's top economic advisers, Larry Kudlow and Treasury Secretary Steven Mnuchin, remain optimistic about the economy's V-shaped recovery despite a recent surge in coronavirus cases. They base their optimism on recent economic indicators that show a strong recovery underway, including sales of existing homes jumping a record 21% in June and retail sales increasing 7.5% after a record spike in May.

Key Takeaways:

  • Both Kudlow and Mnuchin believe a V-shaped recovery is still in place, with Kudlow expecting 20% growth in the third and fourth quarters.
  • Kudlow cited recent economic indicators, including existing home sales and retail sales, as evidence of a strong recovery.
  • Mnuchin pointed to June retail sales numbers as a sign that all the money put into the economy has worked, but argued against simply extending the additional $600 weekly unemployment benefit.
  • Mnuchin also stated that the Republican plan aims to replace 70% of people's wages through unemployment, which would likely amount to much less than $600 per week.

Statistics:

  • Sales of existing homes jumped a record 21% in June (CNBC, July 22)
  • Retail sales increased 7.5% after a record spike in May (WSJ, July 2020)
  • Initial jobless claims increased last week for the first time since March (Labor Department, July 2020)
  • Continuing claims, which represent those receiving unemployment insurance, decreased, suggesting that people are returning to work as states reopen their economies (Labor Department, July 2020)
  • The Republican plan aims to replace 70% of people's wages through unemployment (Business Insider, July 2020)

Sources:

  • CNN: Sunday interview with Larry Kudlow
  • Fox News: Sunday interview with Steven Mnuchin
  • CNBC: Sales of existing homes jump a record 21% in June
  • WSJ: US retail sales report data, June 2020
  • Labor Department: Initial and continuing jobless claims data, July 2020
  • Business Insider: US economic recovery charts suggest recession losing steam, July 2020

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