According to Reuters the White House officials are adamant that there is no economic recession in sight and are insistent that their trade war with China is doing any harm to the United States.
“There is no recession in sight,” White House economic adviser Larry Kudlow said on “Fox News Sunday.””Consumers are working. Their wages are rising. They are spending and they are saving…I think we are in pretty good shape.”
Due to the recession fears the U.S. stock markets had crashed with all the three major U.S. indexes closing down about 3%.
Another sign of lost faith could be seen when, for a brief time last week, the investors demanded a higher interest rate on two-year Treasury bonds.
However on Sunday the last week’s warning signs were dismissed by the trade adviser Peter Navarro who said that the investors were being encouraged to invest in the United States because of the economic growth.
“We have the strongest economy in the world and money is coming here for our stock market. It’s also coming here to chase yield in our bond markets,” Navarro told ABC’s “This Week,”
The tariffs on Chinese goods, Navarro said, “are not hurting anybody here.”
There is no recent growth in the manufacturing field and this flagging world trade has pulled the German economy down.
This lagging economy would prove to be a damper for President Donald Trump who is thinking of contesting for the second term in 2020, based on the economy’s performance. The President told the voters at a rally last week they had “no choice” but to vote for him in order to preserve their jobs and investments.
In order to restore the normal monetary policy the Fed. had to raise the rates seven times over those two years. But even with those steps, the Fed’s target interest rate has remained well below historic norms.
Many Democratic presidential candidates and some economic analysts have said that the government’s wrong policies are the reasons behind the economic decline and disappointing business investment.
“I’m afraid that this president is driving the global economy and our economy into recession,” Democratic candidate Beto O’Rourke said on NBC’s “Meet the Press.”The China trade war and the imposition of tariffs was “hammering the hell out of farmers across this country.”