White House National Economic Council Director Larry Kudlow Talks to... CSPAN February 28, 2020 1:35pm-1:49pm EST
i'm not saying the market is wrong, it is what it is. you know, you've got millions of people trading all around the world. i just think everybody, whether you're an investor or whether you're, you know, ordinary, main street person, people should not overreact. that's an important thing, to not overreact.
this is -- in america we have an incredible strong public health stu the d as i said to president has taken rapid fire, unprecedented actions to help protect in the event of emergency or, you know, further deterioration. i think these are very good things. very constructive things. reporter: numbers on wall street for several days that the president would consider more extreme measures to respond, potentially even up to suspending the tariff on china as one emergency measure due to the virus. is he considering that or any other measures? mr. kramer: there's nothing definite i can report. there's a lot of conversations in and out of the oval office. i was with him yesterday for quite a while talking about one thing and another. we're dealing this with -- we're
dealing with this -- mr. kudlow: this is sometimes a hard choice to make in the middle of this which is part psychology and part fact. i don't think anybody ought to panic right now. we're going to stay the course on our policies, tax cuts and deregulation and energy and ade, you know, and then it's worked, the economy is sound. i'm actually still watching china. china, people have moved from china to italy or other places. i'm still watching china. and i've got ton know tim cook very well. c.e.o. of apple. i was just really interested in the interview with him yesterday because he was rather optimistic about reopening factories and i guess the starbucks people are the same way. the other thing is, just on the economic stock market point, it may change and it may worsen but
right now these sort of realtime, these regional bank surveys, people should pay attention to them. they're sending off good signals on the economy. the numbers we have in january exceeded expectations. that's why that atlanta fed thing is 2.7. we've got another month to go for the quarter and then after that. so we'll see. but i don't think we're going to tack any precipitous policy, at least not at the present time. reporter: how much can the market take before there's long-term effects on the economy? what do you think? mr. kudlow: thank you. ok, the market -- the market has short run correction. i guess 10% or 11% or something. we've been through this many, many times before. and i don't think even though it's a front page story and nobody likes to see their asset
values go down, i just don't think at this point it's going to have much of an impact. i'll qualify that, it depends how long it lasts, how deep it goes. but i can cite from historical experience. remember i was a reagan cub scout way back when. , remember the 1987 market president reagan going up and saying it's fundamentally sound, the economy grew by 3% or 4% the next couple of years after that crash. president trump said it here in this room two nights ago, we just think the economy is sound and therefore i just don't think the short-term stock market plunge is going to have any ong-term effect. reporter: if you had a friend thinking of taking a cruise or
going to china what advice would you give them? mr. kudlow: stay home. reporter: what effect do you think this will have on the president's re-election campaign? mr. kudlow: i think the way he's handling this will have a very pozzive effect on his e-election campaign. i'm a longtime trump friend and watcher, i've been working for him, one of the best news conferences i have ever seen him give. again really historic an unprecedented actions. this is a government-wide effort. i think folks are going to look at that and say, you know what? he's doing his job very well. and i think therefore at the end of the day it's going to actually help him on that. reporter: what emergency powers does the administration have to ramp up domestic production of n-95 masks and other protection
equipment? mr. kudlow: i wouldn't want to go into specifics. there are things we can do to help. hings we can do to unclog, but ypt to go into details on that just a couple more. reporter: can you help clear up some confusion about communications having to be funneled through the vice president's office. many individuals are saying that's what has to happen. on the record the vice president's office has denied that. do government agency need to clear their coronavirus communications through the vice president's office? mr. kudlow: there's a lot, look, we always have coordination here. always. the n.e.c. has to clear things. the president is the ultimate clearance clearance authority. the vice president is running this task force. we're just trying to coordinate our messages. the government-wide operation. it's not an easy thing to do. will say to you, no one is being stifled. no one is being told what to say.
you've got veterans, again, coy. -- i come back to this point, you've got veterans at n.i.h. and c.d.c. with immense knowledge of these things. they've been through this before. we are all ears. we want to hear what they have to say. we want to hear what they tell us. so there's a big difference between stifling and coordinating. i think you have to coordinate. it's a big government. so no, i don't see a problem there at all. i don't see anything wrong with that reporter: officials on the record said that there is no approval process. you're telling me there is? mr. kudlow: um, there's no hard and fast process no. but people have common sense. you've got a task force, actually, i'm a member of the task force. and there's a lot of coordination going on right now. here's the thing. this may not be what you're looking for. but i just want to tell you.
this is such a serious matter. that not only do we want all the information we can possibly get, we would like to have coordinated messages just to stop any confusion with the public. it's a real hard thing to do. but there's no hard and fast, you know, you can't say this, can't say that. that's not the case. but we're sharing information across multiple number of agencies and we're doing it through that task force and we're just trying to coordinate so we're speaking with one voice as much as possible. that's all i'm saying. yes, sir. reporter: you mentioned in a fox interview that the president is on the phone quite a bit, has he spoken to c.e.o.'s of different companies? mr. kudlow: i have. reporter: which companies? is it most in the travel
industry? mr. kudlow: it's across the board. i have gotten to work with, meet and get to know at lot of c.e.o.'s, many of whom are just brilliant people. that's why i clited the tim cook interview. tim cook is an amazing businessman, runs a great company and knows a lot about china. he would not have said what he said if it weren't true or at least on the ground what he saw. but we're keeping an eye on everything right now. we understand it's difficult. sometimes -- sometimes the psychology is a lot worse than the facts. i understand that. it's aa huge -- we're -- human trait. you plan for the worst but that doesn't mean the worst will happen. reporter: anecdotal, the tim cook story, you said that before, sort of broadly, what have you done and what did you pack into those meetings weeks
ago to try to deal with the supply problems? mr. kudlow: the government doesn't run the economy. we can learn and report on it. we don't -- we can't control that. if china is taking tough steps an closed down factories or whole areas, we just have to live with that. as you know, in this room, i have said several times the president has from day one wanned to engage with china, he's talked to them, wants to help china, wanted to send experts over weeks ahead of when they went, we're working with the world health organization as well. we're only as good as the facts. the facts may be harder to come by in some cases. we can't control that my point about supply chain, i understand economics world and the investment world is worried about that. because it could, you know, slow
down growth for a couple of quarters. we just -- i was scanning the "wall street journal" today for example, looking at various stories, north american auto production is proceeding apace. there are problems overseas, especially china. china auto production is terrible. auto sales are terrible. they're going to have a poor first quarter g.d.p. but on the whole looking at these regional fed reports, that's the best i can do right now, we don't see any evidence of major supply chain disruptions. i'm not trying to say nothing is happening. and i think there will be impacts. but to be honest with you, at the moment, i don't see much that may be ahead of us because the next few weeks in march will be important and we'll get new information on that. so far through february it looks ok and i think investors and ordinary families should, you know, take some comfort in that.
so we'll take this a day at a time. thanks very much. appreciate it. reporter: finance minister -- [inaudible] mr. kudlow: summit is in mid june. we had meetings yesterday and finish up today. go on. stay tuned for more. thank you. appreciate it. [captions copyright national cable satellite corp. 2020] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> first thing we want to know is what did you go in with hoping to take out of this briefing and were your concerns addressed? >> there were several concerns we had, the whistleblower issue remains unresolved, at least for travis air force base. i was personally very concerned about the issue of testing. mr. garamendi: the woman who is in