"I spoke to our health experts at some length last evening," Kudlow said during an interview on "Fox & Friends." "They are saying there is no second spike. Secretary Mnuchin said yesterday, and I totally agree, we are not going to shut down the economy."
Every U.S. state has started the process of phased reopening. On Thursday, the U.S. surpassed 2 million COVID-19 cases, according to Johns Hopkins University data. More than 113,000 individuals have died from the virus.
Arizona and Texas were among the states that saw coronavirus cases hit a new peak this week. In others, including California and Florida, infection counts neared their previous highs.
Fears over a resurgence of the virus, along with a dour economic forecast by the Federal Reserve, sent stocks plunging on Thursday. The Dow Jones Industrial Average tanked 1,861 points, or 6.9 percent, the fourth-worst one-day point drop on record. The S&P 500 plummeted by 5.89 percent and the Nasdaq Composite dropped 5.27 percent.
"What you do have is certain spots are seeing a little bit of a jump up," Kudlow said. "Some small metropolitan areas are seeing it. The CDC and the health people are all over it."
The economic toll from the outbreak of the virus and subsequent shutdown is also continuing to grow. On Thursday, the Labor Department said another 1.5 million Americans filed for first-time unemployment benefits. While it marks the 10th week in a row that applications have declined since peaking at the end of March, it's still well above pre-crisis levels. In the three months since American life came to a grinding halt, more than 44 million Americans have lost their jobs.
Earlier this week, the Organization of Economic Cooperation and Development said in its new quarterly outlook that a second virus outbreak, and another round of lockdowns, would inflict deep damage on a global economy already in the throes of the worst recession since the Great Depression.
The U.S. economy is expected to plunge by 7.3 percent this year before expanding by 4.3 percent in 2021. In the event of a second wave, the nation’s economy -- the world’s largest -- would likely shrink by 8.4 percent and grow by 1.9 percent next year, the OECD said.
“By the end of 2021, the loss of income exceeds that of any previous recession over the last 100 years outside wartime, with dire and long-lasting consequences for people, firms and governments,” OECD chief economist Laurence Boone said in a statement.