Daily Management Review

Trump Brushes Aside Fears Of A US Recession


Trump Brushes Aside Fears Of A US Recession
While stressing "most economists" are not of the opinion that there can be a recession for the United States amidst persistent and growing concerns of a continued slowdown, president Donald Trump said that he is "prepared for everything".
"We are doing tremendously well," Trump said while talking to reporters on a tarmac in New Jersey. "Consumers are rich, tax cut loaded up with money. I saw Walmart numbers through the roof, better than any poll," he said.
These comments made by Trump, come at a time when there are growing concerns about the slowdown in the global economy which could potentially be a cause of concern for the re-election bid of Trump in 2020. The growth in the US economy has been one of the popular talking points for Trump showcasing the success of his administration. However, even though the American economy is currently in a good footing, there are risks of recessions hitting five of the largest economies of the world. Additionally, the US markets have also seen poor performance driven by fears of a recession in the US economy.
While expressing confidence about the US economy, Trump admitted that a number of economies across the world are "not doing well like we are doing, the rest of the world, if you look at Germany, if you look at European Union, frankly, look at the UK, look at a lot of the countries, they are not doing well." The US president also added that "most economists actually say we are not going to have a recession."
There were options present with the US about handling of a recession, Trump said, but added that a recession could only happen if the US were left with no choice but to clash head on with China.
"If I wanted to make a bad deal and settle on China, the market would go up. But it wouldn't be the right thing to do," he explained. "I'm just not ready to make a deal, China would like to make a deal, I'm not ready."
Fears of a brewing global recession were also dismissed by two top White House economic advisers and instead tried to highlight how the American economy was doing well under the Trump administration.
"No, I don't see a recession. And let me add just one theme ... Just one theme. We're doing pretty darn well, in my judgment. Let's not be afraid of optimism," Larry Kudlow, the White House's chief economic adviser, told NBC.
On the other hand, all fears of an American recession were brushed off by White House trade adviser Peter Navarro while talking to CNN and added that the yield curve, which is a very important economic indicator related to US Treasury bonds, gets inverted typically before a recession and that it was technically not the case last week.
The US stock market has reached record highs with historic lows for unemployment during the tenure of the Trump administration. However according to experts, factors like the slowing down of the global economy, the reducing impact of the 2017 tax cuts, the US trade policy or even a risk of deflation could trigger a downturn in the US economy.