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Larry Kudlow says US has contained the coronavirus and the economy is holding up nicely

Key Points
  • "We have contained this. I won't say [it's] airtight, but it's pretty close to airtight," said Larry Kudlow, director of the National Economic Council.
  • He added that, while the outbreak is a "human tragedy," it will likely not be an "economic tragedy."
  • "At the moment ... there's no supply disruptions out there yet," Kudlow said.
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Kudlow: Coronavirus will not be economic tragedy

National Economic Council Director Larry Kudlow tried on Tuesday to assuage concerns over the cornavirus and its impact on the U.S. economy.

"We have contained this. I won't say [it's] airtight, but it's pretty close to airtight," Kudlow told CNBC's Kelly Evans on "The Exchange." He added that, while the outbreak is a "human tragedy," it will likely not be an "economic tragedy."

"There will be some stumbles. We're looking at numbers; it's a little iffy," Kudlow said. "But at the moment ... there's no supply disruptions out there yet."

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Kudlow: Not hearing Fed will make panic rate moves due to virus

Kudlow's comments came as the stock market tanked for a second straight day amid worries that the coronavirus outbreak would lead to a prolonged global economic slowdown.

The Dow Jones Industrial Average was more than 700 points lower Tuesday, down 2.7%. On Monday, the 30-stock average had its worst day in two years, dropping more than 1,000 points.

Investors dumped equities in favor of U.S. Treasurys, which are traditionally seen as a safe haven during volatile stretches for the stock market. The benchmark 10-year Treasury yield dropped to 1.32% to reach an all-time low. The 30-year also traded at a record low. Yields move inversely to prices.

Still, Kudlow said the U.S. is "holding up nicely," adding, "All I can do is look at the numbers."

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WATCH: The full interview with Larry Kudlow

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Watch CNBC's full interview with Larry Kudlow on coronavirus, economy