White House Considering U.S. Treasury Coronavirus Bond

WASHINGTON (Reuters) -
White House National Economic Council Director Larry Kudlow. (Reuters/Mary F. Calvert/File Photo)

White House advisers have been discussing the possibility of a coronavirus-related U.S. Treasury bond, President Donald Trump’s economic adviser Larry Kudlow said on Monday.

Kudlow said this was a time to sell bonds to raise cash for coronavirus relief efforts and a “war bond” was a great idea.

“We’re just looking at it … let’s see where it leads,” he told reporters at the White House.

He embraced the idea earlier in an interview with CNBC.

“This would be a long-term investment into the future of American health, safety and the economy,” Kudlow told CNBC. “From my standpoint, technical considerations aside, I think the concept is exactly right.”

Kudlow also said he does not think the Federal Reserve was finished with its efforts to help mitigate the impact of coronavirus.

Asked if there were discussions about a plan to deal with businesses that are not investment grade but have more than 500 employees, he told CNBC: “People calling us and emailing us and so forth. I know Secretary Mnuchin is looking very carefully at that.”