Kudlow says Trump wants US economy to reopen 'as rapidly as possible' but in a 'safe way'

Kudlow: US economy needs to reopen ‘as rapidly as possible’ but in a ‘safe way’

National Economic Council Director Larry Kudlow discusses U.S. economic recovery from the coronavirus, reopening America and U.S.-China relations.

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White House chief economic adviser Larry Kudlow said Tuesday that President Trump wants to see the U.S. economy reopen as fast as possible from the coronavirus lockdown, but stressed that stay-at-home guidelines need to be rolled back in a "safe way."

"The president has certainly noted it, and he wants to see the economy reopen as rapidly as possible, but it's got to be done in a safe way," Kudlow told FOX Business' Stuart Varney. "It's hard for me to make a judgment."

Kudlow's comments come on the heels of a Wall Street Journal editorial that found states opening most slowly are big states run by Democrats that represent roughly one-third of the nation's economy.

It's been close to 10 weeks since the Democratic governors of California, New York, New Jersey and Illinois ordered all nonessential businesses in their states to close to mitigate the spread of COVID-19. As a result of the severe restrictions, job losses in these states have been especially severe.

Kudlow said he's spoken with New York Gov. Andrew Cuomo and New Jersey Gov. Phil Murphy, both Democrats, about their economies reopening. New York is the epicenter of the coronavirus outbreak in the U.S.

"The level of cooperation has been good. And that's very positive. And they've acknowledged that," he said. "So yeah, I'd like to see them open up as fast as possible, but it's gotta be done safely."

Nearly two-thirds of leisure and hospitality jobs in New York and New Jersey and about half in California and Illinois disappeared between February and April, the Journal found, compared to about 43 percent in Florida (one of the first states to lock down and among the first to reopen).

Similarly, four percent of construction workers in Florida lost their jobs compared to 41 percent in New York, 27 percent in New Jersey, 17 percent in California and 11 percent in Illinois.

This is a developing story. Please check back for updates. 

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Kudlow says China will not sell US debt despite coronavirus feud

Kudlow: Entering gradual phase-in of coronavirus reopening

National Economic Council Director Larry Kudlow on economic recovery from the coronavirus, helping workers and small businesses struggling from the outbreak and U.S.-China relations.

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President Trump's chief economic adviser Larry Kudlow said Tuesday he does not believe China will sell U.S. debt, despite escalating tensions between the world's two largest economies over the novel coronavirus outbreak.

"I don’t believe they’ll sell our debt, because those are the crown jewels of their foreign exchange reserves," Kudlow told FOX Business' Maria Bartiromo. "And of course they would lose even more money by doing that. It’s like catching a falling knife."

Beijing is the second-largest owner of U.S. government debt, holding more than $1.1 trillion worth of treasuries.

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The latest flare-up has reignited concerns that China could weaponize its holdings and flood the markets with U.S. bonds. Last week, President Trump and other White House officials directed a government retirement fund to halt ts plans to invest in Chinese stocks this year.

At issue was whether administrators of the Thrift Savings Plan — a retirement savings plan similar to a 401(k) for federal employees and members of the military — should be allowed to move to a benchmark index that includes Chinese companies the U.S. has accused of committing human rights abuses.

"Look, the solution here is for the Chinese to open up their investment system and to play according to the rules set by long-time authorities in the U.S.," Kudlow said.

Relations between China and the U.S. have iced over since the virus outbreak began earlier this year, with the two nations engaging in a vicious war of words.

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The Chinese government has been widely criticized for its initial response to the virus and is frequently attacked by President Trump.

"We could cut off the whole relationship," Trump said during an interview with FOX Business last week.

The central leadership has tried to shift blame to local authorities, including for censuring doctors who tried to warn the public about the disease, The New York Times reported. Health authorities in the country first learned about the outbreak after unknown whistle-blowers leaked two internal documents online.

A recent report, whose authors include an expert from Wuhan's Municipal Center for Disease Control and Prevention, found that if China had taken aggressive action just a week earlier in mid-January, the number of infections could have been reduced by two-thirds.

The feud over the virus, however, has spilled into a broader fight over trade and technology.

"The solution for China is to not sell U.S. bonds, which would bankrupt the Chinese government," Kudlow said. "The solution for China is to put some transparency and openness into it."

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