White House National Economic Council Director Larry Kudlow said Monday that the administration is looking at war-type Treasury bonds to finance measures to combat the coronavirus.
“As far as I’m concerned, I think it’s a great idea,” he told CNBC, adding that “this is a time, it seems to me, to sell bonds and raise money for the war effort — in this case, the pandemic effort.”
Kudlow said the bonds would be long term and would be an effort to “keep families and individuals and business afloat. … This would be a long-term investment into the future of American health, safety, and the economy.”
Kudlow said he would take the idea of war-type coronavirus bonds to the president.
Former Federal Reserve Chairwoman Janet Yellen said on Monday that a war-type bond might be the “appropriate approach” to battling the coronavirus.
“The federal government is going to have enormous deficits. They’re already rolling in about a trillion dollars for this year. … Now, we’re probably looking at deficits roll up to $2 trillion. So thinking about how to finance those is something worthwhile, and maybe a war bond is an appropriate approach,” she told CNBC.
