WH Adviser Kudlow: Will not rule out more money for states, small businesses

Speaking on CNN’s “State of the Union” late Sunday, White House (WH) Economic Adviser Larry Kudlow said, a new economic relief bill cannot be ruled out, as the Trump administration looks to ease the ‘tremendous hardships” caused by the coronavirus pandemic, per Reuters.

Key quotes

“We know the economy is still in a terrible, contractionary phase, tremendous hardships, everywhere.” 

“We’re trying to work through this. I don’t want to rule in or out anything right now. We are in discussions internally and with leading members of Congress.”

“Trump has considered linking such aid to sanctuary cities’ immigration policies.”

“Then we’ll see, we will see in a couple of weeks, what needs to be done and perhaps how to do it.”

When asked whether more aid would be given to small businesses, “it may be,” Kudlow said. “We haven’t made a decision yet.”

Market reaction

Amid holiday-thinned risk-off trading seen in Asia, the safe-havens – the yen and US dollar are broadly bid at the expense of the higher-yielding assets, oil, Antipodeans and S&P 500 futures.

The re-ignition of the US-China trade tensions, with US President Donald Trump’s continued threats of imposing tariffs on China over the coronavirus issue, weigh on the market mood.