Larry Kudlow says US has contained the coronavirus and the economy is holding up nicely

Finance

Larry Kudlow speaking at the CNBC Capital Exchange breakfast in Washington, D.C. on July 9th, 2019.

Paul Morigi | CNBC

National Economic Council Director Larry Kudlow tried on Tuesday to assuage concerns over the cornavirus and its impact on the U.S. economy.

“We have contained this. I won’t say [it’s] air-tight, but it’s pretty close to air-tight,” Kudlow told CNBC’s Kelly Evans on “The Exchange.” He added that, while the outbreak is a “human tragedy,” it will likely not be an “economic tragedy.”

“There will be some stumbles. We’re looking at numbers; it’s a little iffy,” Kudlow said. ” But at the moment, the numbers that we’re looking at … there’s no supply disruptions out there yet.”

Kudlow’s comments came as the stock market tanked for a second straight day amid worries the coronavirus outbreak would lead to a prolonged global economic slowdown.

The Dow Jones Industrial Average traded nearly 600 points lower on Tuesday, down more than 2%. On Monday, the 30-stock average had its worst day in two years, dropping more than 1,000 points. 

Investors dumped equities in favor of U.S. Treasurys, which are traditionally seen as a safe haven during volatile stretches for the stock market. The benchmark 10-year Treasury yield dropped to 1.32% to reach an all-time low. Its 30-year counterpart also traded at a record low. Yields move inversely to prices. 

Still, Kudlow said the U.S. is “holding up nicely,” adding: “All I can do is look at the numbers.”

This is breaking news. Please check back for updates.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Products You May Like

Articles You May Like

Coronavirus loan program delayed for independent contractors and self-employed workers
Mohamed El-Erian: The stock market could still go back down to new coronavirus lows
Coronavirus live updates: Italy’s daily death toll drops to lowest in 2 weeks
Coronavirus live updates: Xi leads national day of mourning in China; Tesla dismissing contractors
Investors should have up to 10% in this ‘hedge against the unexpected,’ says ‘Godfather’ of gold

Leave a Reply

Your email address will not be published. Required fields are marked *