White House Claims There Is No Looming Recession
This week, an inversion of the yield curve worried investors and Wall St. encountered a tumultuous week. There was a 300 point recovery in the market on Friday afternoon and the yield curve is no longer inverted. Still, some in the financial world still feel a recession could be coming.
Peter Navarro and Larry Kudlow, both fiscal advisers to the White House, appeared on cable news this weekend in an attempt to allay those fears. According to both men, the economy is strong and there is no need to fear of an upcoming recession.
Kudlow appeared on multiple shows over the weekend. He told Dana Perino from Fox News that, “the economy is in good shape. There is no recession in sight.”
In another interview with NBC’s Chuck Todd, Kudlow claimed, “Consumers are working. At higher wages. They are spending at a rapid pace. They’re actually saving also while they’re spending ― that’s an ideal situation.”
Economist Peter Navarro largely echoed Kudlow’s sentiments while speaking with ABC’s Martha Raddatz. “We did not have a yield curve inversion right now, by technical standpoints,” he said. “You have to have a significant spread between short and long rates.”
NEW: "What I can tell you with certainty is that we're going to have a strong economy through 2020 and beyond," White House trade adviser Peter Navarro tells @MarthaRaddatz when asked about indicators that the U.S. could be headed for a recession. https://t.co/DSCH574dyL pic.twitter.com/Vn5UP0Tb70
— ABC News (@ABC) August 18, 2019
Navarro continued by saying, “What I can tell you with certainty is that we’re going to have a strong economy through 2020 and beyond”
Earlier this week, Trump claimed that the success of the economy means that voters must support him. He told rally goers, “And then you’re going to vote for somebody else? Oh great. Let’s vote for Elizabeth “Pocahontas” Warren. We have the best numbers we’ve ever had — let’s vote for somebody else.”