White House officials pushed back on Sunday against concerns that economic growth may be faltering, saying they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States, Reuters informed.
Trump administration 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 U.S.” to advance negotiations over ending a trade battle that has emerged as a potential risk to global economic growth.
But 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” the United States remained “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.”
His comments follow a rocky week in which concerns about a possible U.S. recession began to drive financial markets and seemed to put administration officials on edge about whether the economy would hold up through the 2020 presidential election campaign. Democrats on Sunday argued Trump’s trade policies are now posing an acute, short-term risk.
U.S. stock markets tanked last week on recession fears with all three major U.S. indexes closing down about 3% on Wednesday only to pair their losses by Friday due to expectations the European Central Bank might cut rates.
The Fed and 19 other central banks have already loosened monetary policy in what Fitch Ratings last week described as the largest shift since the 2009 recession.
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