White House economic adviser Larry Kudlow sought to calm markets after stocks tumbled Thursday on news of a projected second wave of coronavirus, claiming there “is no second wave.”
“I’m not the health expert, but on the so-called spike, I spoke to our health experts at some length last evening. They are saying there is no second spike, let me repeat that, there is no second spike. And that – Sec. Mnuchin said yesterday in testimony and I totally agree, we are not going to shut down the economy,” Kudlow said during an appearance on Fox News Friday.
After fears about a rise in coronavirus cases, US stocks posted their sharpest selloff in three months. US stocks surged at Friday's opening bell.
But Kudlow appears to contradict himself almost immediately by saying some places are up — although he is quick to say the Trump Administration has it handled.
Kudlow continued, “What you do have is certain spots are seeing a little bit of a jump up. Some small metropolitan areas are seeing it. CDC and the health people are all over it – they sent some task forces out to deal with that. You know, nowadays, we have better equipment, much more experience, much better testing. I mean the testing itself has jumped up, so you’re going to get a little more positivity from that. But if you look nationally, the important point is the rate of increase of new cases is between 0 and 1 percent. It’s really flattened out, and with respect to fatalities, it’s the same, it’s actually lower than that, it’s like zero to a half a percent.”
What we know about the virus: While new case rates aren’t growing significantly for now, 19 states are experiencing rising cases as of Friday. In many states, hospitalizations are also increasing, an indicator of people seriously ill with Covid-19.
Kudlow also suggested Dr. Deborah Birx – who has been largely silent and away from cameras – may be seen Friday, but it’s unclear how or when.
“If I can calm fears, again I’m not the health expert, Amb. Birx may be out and about later today. Nonetheless, there is no emergency, there is no second wave. I don’t know where that got started on Wall Street,” he said.