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The US economy is still in freefall from the pandemic shutdown and cannot spend its way out of the downturn, White House economic adviser Larry Kudlow told Fox News on Friday.

“Cutting the corporate tax rate in half for companies moving production back to the US is something to look at,” Kudlow added. “In a few weeks, perhaps White House will negotiate on an economic relief package.”

Market reaction

After starting the day sharply lower, Wall Street’s main indexes staged a rebound in the last hour. As of writing, the Dow Jones Industrial Average and the S&P 500 were both down around 0.3% on the day.