Don’t Worry, Be Optimistic: Trump Downplays Concerns of Gloom and Doom Recession Lies Left Has Spread; Points to Booming Economy, Historically Low Unemployment Rate, Positive Effects of Tariffs

  • President Trump on Sunday expressed optimism that the U.S. economy is still booming despite talks of a looming recession and huge stock market losses last week amid his continued trade war with China.
  • Trump told reporters: “I don’t think we’re having a recession. We’re doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they’re loaded up with money.”
  • During his presidency, Trump has been proud of the robust economy that he has credited himself with creating.
  • On Twitter on Sunday, the president posted: “Our economy is the best in the world, by far. Lowest unemployment ever within almost all categories. Poised for big growth after trade deals are completed. Import prices down, China eating Tariffs. Helping targeted Farmers from big Tariff money coming in. Great future for USA!”
  • Trump’s top economic adviser, Larry Kudlow, also dismissed the idea of a recession hitting the U.S. in the second half of the year.
  • Kudlow said: “We’re doing pretty darn well in my judgment. Let’s not be afraid of optimism.” Kudlow also added “that consumers are earning more and are able to save and spend more.”
  • Before becoming a part of the Trump administration, Kudlow was an economic analyst who “was known for opposing tariffs and promoting free trade. He said Trump has taught him and others that the China story has to be changed and reformed.”
  • However, “Democratic presidential candidate Beto’ O’Rourke said Trump’s trade war with China is hammering the hell out of farmers across this country.”
  • Another Democratic presidential candidate, Mayor Pete Buttigieg, said: “There is clearly no strategy for dealing with the trade war in a way that will actually lead to results for American farmers or American consumers.”
  • Trump continues to maintain that his tariffs against China are beneficial and said that although China is ready to secure a trade deal, he isn’t.
  • The president said: “I’m just not ready to make a deal yet. China would like to make a deal. I’m not ready.”
  • The Fed, last month, “reduced its benchmark rate — which affects many loans for households and businesses — by a quarter-point to a range of 2 percent to 2.25 percent, the first rate cute since 2008 during the Great Recession.”
  • Peter Navarro, who advises Trump on trade policy, said: “The Federal Reserve chairman should look in the mirror and say, ‘I raised rates too far, too fast, and I cost this economy a full percentage point of growth.’”

Reference Links

  • Fox: Trump brushes off concerns of recession, touts strong economy READ
  • BBC: Trump plays down fears of US recession READ
  • CNBC: White House pushes back against recession fears, defends trade war READ
  • NBC: ‘I don’t see a recession’: Trump, advisers downplay economic fears READ

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