President Donald Trump denied recession concerns on Sunday and provided an optimistic economic outlook after the decline in the financial markets last week.
“I don’t think we’re having a recession,” Trump told reporters as he returned to Washington from New Jersey. “We’re doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they’re loaded up with money.”
The president also tweeted, “Our economy is the best in the world, by far. Lowest unemployment ever within almost all categories. Poised for big growth after trade deals are completed. Import prices down, China eating Tariffs. Helping targeted Farmers from big Tariff money coming in. Great future for USA!”
Our economy is the best in the world, by far. Lowest unemployment ever within almost all categories. Poised for big growth after trade deals are completed. Import prices down, China eating Tariffs. Helping targeted Farmers from big Tariff money coming in. Great future for USA!
— Donald J. Trump (@realDonaldTrump) August 18, 2019
Larry Kudlow, Trump’s top economic adviser, dismissed concerns of a coming recession and expected that financial performance will be successful in the second half of 2019.
“We’re doing pretty darn well in my judgment. Let’s not be afraid of optimism,” Kudlow said.
Kudlow acknowledged a slowing energy sector, but said low interest rates will help housing, construction, and auto sales.
Last month, the Federal Reserve cut its benchmark—that impacts many household and business loans—by a quarter of a point to a range of 2% to 2.25%. This was the first rate cut since December 2008 in the Great Recession. Federal Reserve Chairman, Jerome Powell, stressed the Fed’s concern over the effects of the trade conflict with Trump and its tedious economic slump.
“Weak global growth and trade tensions are having an effect on the U.S. economy,” he said.
Peter Navarro, who advises Trump on trade policy, commented.
“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,’” Navarro said.
Trump’s trade war with China has been a target of criticism by Democrats vying to challenge him in 2020.
“There is clearly no strategy for dealing with the trade war in a way that will actually lead to results for American farmers or American consumers,” said Mayor Pete Buttigieg of South Bend, Indiana, a Democratic presidential candidate. He said on CNN that it was “a fool’s errand” to think tariff increases will compel China to change its economic approach.
Peter Navarro asserted on Sunday that tariffs on China are not hurting U.S. consumers or farmers, despite reports to the contrary from researchers.
“We’re in a situation where consumers have not been hurt, China is bearing the entire burden,” Navarro said on CNN’s “State of the Union.”
“You put on 10% tariffs on $200 billion. And China devalues its currency by 12%. Are consumers bearing anything on that? No. We have seen absolutely no evidence in the price data. It’s not showing up in the consumer price index,” he explained.
Includes reporting from the Associated Press