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

August 19, 2019by Katia Dmitrieva, Hailey Waller and Jordan Yadoo
White House economic advisor Larry Kudlow talks to the media outside the White House on July 26, 2019 in Washington, D.C. (Olivier Douliery/Abaca Press/TNS)

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.

Economy

Bipartisan, Bicameral Bill Aims to Provide Unemployed With Access to Skills Training
Employment
Bipartisan, Bicameral Bill Aims to Provide Unemployed With Access to Skills Training
May 22, 2020
by Dan McCue

WASHINGTON - A bipartisan bill introduced in both the House and Senate this week would create a flexible, $4,000 skills training credit for workers who have lost their job due to the coronavirus outbreak. The Skills Renewal Act affords these workers the opportunity to access their... Read More

Senate Leaves for Memorial Day Break Without Deal On New Relief Bill
Congress
Senate Leaves for Memorial Day Break Without Deal On New Relief Bill
May 22, 2020
by Dan McCue

WASHINGTON - The Senate has left town for its annual Memorial Day recess with no agreement in sight on a fourth coronavirus economic relief bill and a schedule that suggests a new stimulus won't be done until July. Last week, the House passed the $3 trillion... Read More

Mnuchin Says ‘Strong Likelihood’ US Will Need More Stimulus
Economy
Mnuchin Says ‘Strong Likelihood’ US Will Need More Stimulus

WASHINGTON — Treasury Secretary Steven Mnuchin said Congress will very likely need to pass more stimulus legislation for the U.S. economy, as the nation struggles to recover from the coronavirus outbreak. “I think there is a strong likelihood we will need another bill,” he said Thursday... Read More

Pandemic-Related Job Losses Top 38 Million as Pace Continues to Slacken
Economy
Pandemic-Related Job Losses Top 38 Million as Pace Continues to Slacken
May 21, 2020
by Dan McCue

WASHINGTON - The number of Americans applying for unemployment benefits in the nine weeks since the onset of the coronavirus pandemic reached 38.6 million last week, just as states across the nation began to take decisive steps to reopen their economies and reverse the trend. The... Read More

As All 50 States Start Reopening, Questions on Virus Tracking Data Fuel Concerns
State News
As All 50 States Start Reopening, Questions on Virus Tracking Data Fuel Concerns

Florida Gov. Ron DeSantis is defending his administration’s reporting of coronavirus data, after a state Department of Health manager said she was fired for refusing to manipulate COVID-19 tracking data as officials moved to reopen the state. Rebekah Jones, who was in charge of Florida’s online... Read More

House to Vote on Stand-Alone Small-Business Loan Program Fixes
Congress
House to Vote on Stand-Alone Small-Business Loan Program Fixes

WASHINGTON — The House will vote next week on legislation changing terms of the Paycheck Protection Program that have served as obstacles to some small businesses seeking relief under the forgivable loan program. “We saw a quick fix on how we could make this work better,”... Read More

Straight From The Well
scroll top