Trump dismisses fears of a looming recession
President bullish as economic advisor defends China tariffs
BERKELEY HEIGHTS, N.J. — President Donald Trump dismissed concerns of recession on Sunday and offered an optimistic outlook for the economy after last week’s steep drop in the financial markets.
“I don’t think we’re having a recession,” 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.”
Consumer confidence has dropped 6.4% since July. The president’s tweeting last week focused on talking up the economy.
Larry Kudlow, Trump’s top economic adviser, dismissed fears of a looming recession and predicted the economy will perform well in the second half of 2019. He said that consumers are seeing higher wages and are able to spend and save more.
“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.
Kudlow also defended the president’s use of tariffs on goods coming from China. Before he joined the administration, Kudlow was known for opposing tariffs and promoting free trade during his career as an economic analyst. Kudlow said Trump has taught him and others that the “China story has to be changed and reformed.”
“We cannot let China pursue these unfair and unreciprocal trading practices,” Kudlow said.
Last month, the Federal Reserve reduced its benchmark rate — which affects many loans for households and businesses — by a quarter-point to a range of 2% to 2.25%. It’s the first rate cut since December 2008 during the depths of the Great Recession.