Kudlow Pushes Back On Recession, Says U.S.-China Calls Positive

August 19, 2019by Katia Dmitrieva, Hailey Waller and Jordan Yadoo

WASHINGTON — Larry Kudlow pushed back Sunday on the notion that the U.S. economy is headed toward a recession, and said recent phone calls between U.S. and Chinese trade negotiators had produced more “positive news.”

Kudlow, the White House National Economic Council director, and Peter Navarro, President Donald Trump’s trade adviser, made multiple appearances on Sunday talk shows to discuss the economy and China trade prospects after a tumultuous week in financial markets.

“I don’t see a recession at all,” Kudlow said on “Fox News Sunday.” He added that there were no plans for additional fresh measures to boost the economy, and that the Trump administration would stay the course on its current agenda.

“Consumers are working. At higher wages. They are spending at a rapid pace. They’re actually saving also while they’re spending — that’s an ideal situation,” he said on NBC’s “Meet the Press.”

Navarro, on ABC’s “This Week,” predicted “a strong economy through 2020 and beyond.”

On CNN, Navarro disputed that the U.S. had seen an inverted yield curve, often a forerunner of recession because it signals market expectations for weaker growth ahead.

“Technically we didn’t have a yield curve inversion,” he said on “State of the Union.” “All we’ve had is a flat yield curve.”

Trump on Wednesday lashed out at Federal Reserve Chairman Jerome Powell on Twitter, specifically mentioning the “CRAZY INVERTED YIELD CURVE.”

Navarro once again criticized the Powell and the Fed on Sunday. “The Federal Reserve chairman should look in the mirror and say ‘I raised rates too fast,’” Navarro said on CNN.

Additional Fed rate cuts beyond the quarter-point move in July will be a good thing, Navarro said, and a potential easing by the European Central Bank in September will help Europe’s struggling economy.

U.S.-China trade tension boiled over this month after a brief detente. The U.S. officially declared China a currency manipulator, and the country responded with a boycott of American farm products and signaling that its currency can help cushion the tariff blow.

Navarro said the U.S. still has “significant structural issues” with China, while Kudlow looked forward to a “substantive renewal” of talks with Beijing. He provided no specifics on the as-yet unrevealed “positive news” out of recent telephone talks between the two sides.

At a time Trump is pursuing trade disputes with China, Europe and others, an NBC-Wall Street Journal poll released on Sunday showed support for free trade among Americans is on the rise.

Almost two-thirds — 64% — see free trade as good for the U.S., an all-time high for the survey series and up 7 percentage points from the last time it was asked, in 2017. Only 27% believe it’s bad because it hurts key industries.

Kudlow, on Fox, discussed Trump’s decision to delay some planned 10% tariffs to December from September. The administration is giving companies time so they won’t “jack up prices,” he said.

Trump and his top aides have said repeatedly that Beijing, not U.S. companies or consumers, are bearing the brunt of the tariffs imposed on imports from China.

One key measure of U.S. inflation increased in July, driven by costs of shelter costs, apparel and used cars, and gained the most in a decade in the past two months, the Labor Department reported this month. Economists say the boost in inflation shows the tariffs are gradually filtering through.

The tariff war has increased prices for goods, and U.S. companies are paying the higher levies, according to a survey by the Federal Reserve Bank of New York. The U.S. government collected $57 billion in customs duties in the fiscal year that began Oct. 1, according to the Treasury Department.

—With assistance from Jennifer Jacobs.


©2019 Bloomberg News

Visit Bloomberg News at www.bloomberg.com

Distributed by Tribune Content Agency, LLC.


Majority of CFOs See US Sliding Into Recession Before 2020 Election Economy
Majority of CFOs See US Sliding Into Recession Before 2020 Election
September 19, 2019
by Dan McCue

WASHINGTON - A majority of chief financial officers surveyed by Duke University believe the United States will be in an economic recession by the 2020 Election, despite continuing low unemployment. Fifty-three percent of the 225 CFOs participating in the latest Duke University/CFO Global Business Outlook survey,... Read More

Wall Street May Get $40 billion Reprieve From Trump Regulators Business
Wall Street May Get $40 billion Reprieve From Trump Regulators

WASHINGTON — Wall Street could soon get one of its most consequential wins of the Trump era as regulators are considering ripping up a rule that’s forced banks to set aside billions of dollars for swaps trades, according to people familiar with the matter. At issue... Read More

Saudi Attacks Reveal Oil Supply Fragility in Asymmetric War Geopolitics
Saudi Attacks Reveal Oil Supply Fragility in Asymmetric War

DUBAI, United Arab Emirates — The latest and most destructive attacks on Saudi oil facilities provide stark evidence of the vulnerability of global crude supply in an age of disruptive technologies that can bring a century-old industry to its knees — at least temporarily. From remote-controlled... Read More

46,000 UAW Workers Strike At GM Plants Nationwide Business
46,000 UAW Workers Strike At GM Plants Nationwide

DETROIT — Members of the United Auto Workers went on strike at General Motors Co. plants nationwide at midnight Sunday night, sending 46,000 workers to picket lines in the union’s first walkout since the automaker emerged from taxpayer-funded bankruptcy a decade ago. The UAW on Sunday... Read More

White House Repeals Obama-Era Clean Water Rule Environment
White House Repeals Obama-Era Clean Water Rule
September 13, 2019
by Dan McCue

WASHINGTON — The Trump administration announced Thursday that it is repealing an  Obama-era clean water rule that had placed limits on polluting chemicals that could be used near streams, wetlands and other bodies of water. According to the Environmental Protection Agency, the repeal of the 2015... Read More

House Panel Told Broadband Policies Should Not Worsen Urban/Rural Divide Technology
House Panel Told Broadband Policies Should Not Worsen Urban/Rural Divide
September 11, 2019
by Dan McCue

WASHINGTON - A far-reaching broadband connectivity should not be dictated by the location of a home or business, but rather should foster economic growth and sustainable communities by being equally accessible by all. That was the overarching message delivered to the House Small Business Subcommittee on... Read More

Straight From The Well
scroll top