PETE: WELCOME BACK WELL THE STOCK MARKET TAKING A
HIT AS BIG TECH AND OIL
COMPANIES WARN COVID-19 IS
TAKING A TOLL ON THEIR
BUSINESSES BUT NATIONAL ECONOMIC
COUNCIL DIRECTOR LARRY KUDLOW
HAS HOPED FOR NEXT YEAR.
>> WE’RE GOING TO TAKE ANOTHER
BAD HIT IN THE SECOND QUARTER
BECAUSE OF THE NATIONAL SHUTDOWN
BECAUSE OF THE VIRUS.
THE OTHER HAND, THE
CONGRESSIONAL BUDGET OFFICE
AND PRIVATE FORECASTERS SEEM TO
AGREE WITH PRESIDENT TRUMP THAT
THE SECOND HALF ECONOMY IS GOING
TO SHOW VERY SIGNIFICANT GROWTH
GOING INTO 2021.
PETE: SO WHAT CAN WE EXPECT AS
MORE STATES REOPEN THROUGHOUT
THIS TRANSITION MONTH, JOINING
US TO DISCUSS WHITE HOUSE
ECONOMIC ADVISOR KEVIN HASSETT.
KEVIN THANKS FOR BEING WITH US I
REALLY APPRECIATE IT.
GIVE US THE WHITE HOUSE
PERSPECTIVE ON THE MONTH OF MAY.
WHAT IS YOUR HOPE WHEN THE MONTH
IS OUT, WHERE DO YOU HOPE WE’LL
BE?
BE? >> WELL, I THINK WHAT WE’RE SEE
MAY, ALMOST EVERY STATE WILL BE
MOSTLY OPEN ECONOMICALLY.
RIGHT NOW, THERE’S A HECK OF A
LOT OF GRADUAL OPENING GOING ON,
EVEN SOME STATES ARE STARTING
WITH SAFE DISTANCING AND SO ON
TO FOLLOW OUR GUIDELINES, AND
OPEN EVEN RESTAURANTS SAFELY SO
I EXPECT WHAT’S GOING TO HAPPEN
IS WE’RE GOING TO GAIN MORE AND
MORE EXPERIENCE ABOUT HOW TO RUN
OUR ECONOMY SAFELY.
AT THE SAME TIME, YOU KNOW, OUR
ACCESS TO TESTING IS GOING TO GO
WAY UP AND OUR ACCESS TO MEDICAL
SUPPLIES SO THAT WE DON’T HAVE
TO WORRY ABOUT HITTING CAPACITY
SHOULD PEOPLE GET SICK WILL GO
UP AND WE’RE GOING TO MONITOR
THE SITUATION CLOSELY BUT MAKE
NO MISTAKE ABOUT IT THAT IT’S
REALLY REALLY GOOD NEWS THAT
WE’VE BEEN ABLE TO OPEN UP AS
SOON AS WE HAVE AND TO DO SO
ACCORDING TO THE GUIDELINES THAT
DR. BIRX AND DR. FAUCI HAVE SET
OUT BECAUSE THAT MEANS THAT THE
SORT OF HARM FROM STOPPING
THE ECONOMY IS REDUCED
SIGNIFICANTLY BY GETTING IT
GOING SOONER.
GOING SOONER. PETE: WELL IT’S GREAT NEWS
EVERYONE WANTS TO BE BACK OUT
AND OPEN AGAIN.
WHAT INDICATORS ARE YOU LOOKING
AT MOST CLOSELY EITHER HEALTH OR
ECONOMIC AS YOU GAUGE HOW
POWERFUL THE RETURN IS?
>> YOU KNOW, EVERYBODY IN THE
WHITE HOUSE GETS DAILY
UPDATES ON WHAT’S GOING ON WITH
THE DISEASE IN EVERY STATE WE
EVEN HAVE IT AT THE COUNTY LEVEL
AND WE’RE ALSO GETTING DATA ON
CLAIMS FOR UNEMPLOYMENT
INSURANCE AND NEXT FRIDAY, WE’LL
GET A JOBS REPORT WHICH WILL BE
THE FIRST GLIMPSE OF SORT OF HOW
BAD THE SHUTDOWN HAS HURT THINGS
SO WE’RE WATCHING EVERYTHING WE
CAN GET OUR HANDS-ON AND WE HAVE
ACCESS TO CREDIT CARD DATA SO WE
CAN GET A REALTIME GLIMPSE AT
WHAT’S GOING ON AND THE PLACES
THAT ARE OPEN AS OPPOSED TO THE
PLACES THAT ARE CLOSED BUT MAKE
NO MISTAKE ABOUT IT WHAT’S GOING
TO HAPPEN IS THAT WE’RE GOING TO
MINIMIZE THE HARM BY OPENING NOW
AS MUCH AS WE CAN BUT YOU’LL SEE
ECONOMIC DATA OVER THE NEXT
FEW MONTHS THAT’S AS BAD AS
YOU’VE EVER SEEN.
WE TURN THE ECONOMY COMPLETELY
OFF WHICH IS SOMETHING THAT JUST
HASN’T EVER HAPPENED BEFORE, AND
SO YOU ARE GOING TO SEE A VERY
BIG INCREASE IN THE UNEMPLOYMENT
RATE, VERY BIG DECLINE AS LARRY
KUDLOW MENTIONED IN SECOND
QUARTER GDP BUT MOST FORECASTERS
EXPECT THE SECOND HALF CAN RE
BOUND FROM THAT AND THE SOONER
WE GET GOING, THE MORE LIKELY IT
IS THAT THAT’LL BE TRUE.
PETE: KEVIN YOU MENTIONED CREDIT
CARD DEBT A LOT OF PEOPLE ARE
SITTING ON THAT, BUSINESSES HAVE
BEEN HELPED BY THE PPP, FUNDING
THEIR PAYROLLS BUT WAITING AND
TO SEE WHAT HAPPENS NEXT,
THERE’S ALREADY TALK POSSIBLY ON
CAPITOL HILL OF A FOURTH
STIMULUS BILL, DEMOCRATS
POINTING TOWARDS STATE,
REPUBLICANS SAYING HEY LET’S NOT
BAIL OUT THE MISS CALL IN
RESPONSIBILITY OF STATES THROUGH
A CORONAVIRUS BILL.
IF MORE COMES FROM WASHINGTON,
WHAT SHOULD IT LOOK LIKE?
>> RIGHT WELL THE PRESIDENT HAS
SAID THAT HE CATEGORICALLY
REJECTS THE IDEA OF A BAILOUT
FOR STATES THAT THE HAVE
BEEN IRRESPONSIBLE FOR A LONG
TIME BUT TO THE EXTENT THAT THE
COSTS OF COVID ON STATES
BLUE AND RED, ON ALL OF THEM,
ARE HIGH ENOUGH THAT MAYBE THEY
NEED FINANCIAL SUPPORT THAT HE’S
WILLING TO NEGOTIATE ABOUT THAT
SHOULD THERE BE A PHASE IV DEAL.
I THINK RIGHT NOW BECAUSE
THERE’S BEEN GOOD NEWS REALLY
THAT THE OPENING UP IS STARTING
TO HAPPEN FASTER THAN WE
EXPECTED, THEN THERE IS A CHANCE
THAT WE WON’T REALLY NEED A
PHASE IV AND SO I THINK THAT
WHAT THE PRESIDENT HAS TOLD US
IS THAT UPDATE THEM EVERY DAY ON
THE STATUS OF EVERYTHING AND TO
BE IN A WAIT AND SEE MODE AND AT
THE SAME TIME WHAT WE’RE DOING
IS WE’RE DEVELOPING PLANS FOR
WHATEVER OCCURS SO IF IT
GETS WORSE WE’VE GOT A PLAN FOR
THAT.
THAT. PETE: WE HAVE TO LEAVE IT THERE.