Date
18 September 2019
The US economy remains in 'pretty good shape' despite the China trade conflict, says White House economic adviser Larry Kudlow. Photo: Reuters
The US economy remains in 'pretty good shape' despite the China trade conflict, says White House economic adviser Larry Kudlow. Photo: Reuters

White House dismisses recession fears

US President Donald Trump and top White House officials dismissed concerns that economic growth may be faltering, saying on Sunday that they see little risk of recession despite a volatile week on global bond markets, Reuters reports.

They insisted that their trade war with China is doing no damage to the United States, the report said.

“We’re doing tremendously well, our consumers are rich, I gave a tremendous tax cut, and they’re loaded up with money,” Trump said on Sunday.

But he was less optimistic than his aides on striking a trade deal with China, saying that while he believed China was ready to come to an agreement, “I’m not ready to make a deal yet.”

He hinted that the White House would like to see Beijing resolve ongoing protests in Hong Kong first.

“I would like to see Hong Kong worked out in a very humanitarian fashion,” Trump said. “I think it would be very good for the trade deal.”

White House economic adviser Larry Kudlow said trade deputies from the two countries would speak within 10 days and “if those deputies’ meetings pan out… we are planning to have China come to the USA” to advance the trade negotiations.

Even with the talks stalled for now and the threat of greater tariffs and other trade restrictions hanging over the world economy, Kudlow said on “Fox News Sunday” that the US remains “in pretty good shape.”

“There is no recession in sight,” Kudlow said. “Consumers are working. Their wages are rising. They are spending and they are saving.”

Their comments follow a week in which concerns about a possible US recession weighed on financial markets and seemed to put administration officials on edge about whether the economy would hold up through the 2020 presidential election campaign, Reuters noted.

White House trade adviser Peter Navarro on Sunday dismissed the idea that last week’s market volatility was a warning sign, saying “good” economic dynamics were encouraging investors to move money to the United States.

“We have the strongest economy in the world and money is coming here for our stock market. It’s also coming here to chase yield in our bond markets,” Navarro told ABC’s “This Week.”

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