Labor Department reports that the American economy gained 1.8 million jobs last month marked a "very important, very positive number" and showed that single-digit unemployment rates will return by the November election, White House economic adviser Larry Kudlow said Friday.
"Bear in mind that this was in July, the week of July 12-18," Kudlow said on Fox Business Network's "Varney & Co." "That was smack in the middle of the spiking hot spots in the southwest and a few other places."
The New York Times reports that the increase still fell below the 4.8 million jobs jump in June. Meanwhile, the unemployment rate fell to 10.2%.
But the job growth came durinf partial shutdowns, and that's "a great sign of strength," Kudlow said.
"Getting unemployment down to 10.2% puts lie to the idea we will have double-digit unemployment in the fall around election time," said Kudlow. "You are going to see single-digit unemployment rates. We may not get back, we are not going to get back to where we were at the peak in February, I grant you that, but the idea we are going to get down to, you know, below 10%, 9%, 8%, I don't want to go too far but that's a big change."
Kudlow added that the recovery is "self-sustaining."
"What's going on in the economy, car sales are booming, retail spending overall is booming," said Kudlow, "but companies will have to produce inventories to restock the shelves all across America and that is a huge boost to the economy in the third and fourth quarters."
Meanwhile, millions of people remain unemployed and it does not appear that the $600 federal unemployment bonus will return, so President Donald Trump is "Intent on using all of the federal power levers at his disposal and if we have to do executive orders, he will do them," said Kudlow, insisting that the president is not bluffing on ordering a payroll tax cut.
"I'm working with the counsel's office on a payroll tax cut," he said. "The draft is basically completed."
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