Sunday, President Trump said the economy is “doing very well” and dismissed concerns of recession, offering an optimistic outlook after last week’s dip in the financial markets.
“I don’t think we’re having a recession,” President Trump told reporters as he returned to Washington from his New Jersey golf club. “We’re doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they’re loaded up with money.”
Larry Kudlow, President Trump’s Top economic adviser, also played down fears of a recession and predicted the economy will perform well in 2-H of Y 2019. In Sunday television interviews, he said that consumers are seeing higher wages and are able to spend and save more.
“No, I don’t see a recession,” he said. “We are doing pretty darn well in my judgment. Let’s not be afraid of optimism.”
Mr. Kudlow acknowledged a slowing energy sector, but said low interest rates will help housing, construction and auto sales.
Mr. Kudlow defended the President’s use of tariffs on goods coming from China. He said President Trump has taught him and others that the “China story has to be changed and reformed.”
“We cannot let China pursue these unfair and nonreciprocal trading practices any longer,” he said.
Last month, the Fed reduced its benchmark rate by a quarter-point to a range of 2% to 2.25%, the 1st rate cut since December 2008 during the depths of the Great Recession. Fed Chairman Powell stressed that the Fed was worried about the consequences of President Trump’s trade dispute and sluggish emerging and developed economies overseas.
President Trump has been highly critical of Mr. Powell, as he places blame for any economic weakness on Fed for raising interest rates too much over the past 2 years.
Peter Navarro, who advises President Trump on trade policy, shares that sentiment.
“The Federal Reserve Chairman should look in the mirror and say, ‘I raised rates too far, too fast, and I cost this economy a full percentage point of growth,‘” Mr. Navarro said.
He went on to say that US consumers are not affected by the administration’s trade dispute with China.
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