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Home / World / Recession in the US? Trump is at risk of US recession after 10 days of vacation in Bedminster, New Jersey

Recession in the US? Trump is at risk of US recession after 10 days of vacation in Bedminster, New Jersey



President Trump returned to Washington on Sunday after spending 10 days at his New Jersey golf club. Prior to joining Air Force One, the President has warned that the risks of a recession for the US economy are being curbed. Mr. Trump said the economy is "going very well" and rejected recession worries providing an optimistic outlook after the steep slump in financial markets last week .

"I do not know I do not think we have a recession," Mr. Trump told reporters on Sunday afternoon before returning to the White House. "We are doing very well, our consumers are rich, I have made huge tax cuts and they are loaded with money."

Larry Kudlow, Mr. Trump's chief economic adviser, also downplayed the fear of a looming recession In television interviews on Sunday, he predicted that consumers would see higher wages and be able to spend more and save ̵

1; despite a turbulent week on Wall Street (19459003) (19459004).

"No, I do not see a recession," Kudlow said. "I think we're pretty damned good, we should not be afraid of optimism."

Kudlow also stated that strong retailing and low unemployment are signs that the US economy remains strong.

  Donald Trump
President Trump talks to the press before boarding Air Force One in Morristown, New Jersey, on August 18, 2019.

Getty


A strong economy is the key to Mr. Trump's re-election prospects. Consumer confidence has fallen by 6.4% since July. The President spent most of the week at his golf club in Bedminster, New Jersey. Much of his tweets focused on boosting the economy.

Kudlow conceded that the energy sector is slowing car sales.

Kudlow also defended the use of tariffs by the President on goods from China. Before joining the administration, Kudlow was known throughout his career as an economic analyst for rejecting tariffs and promoting free trade. Kudlow said Mr. Trump taught him and others that "China history needs to be changed and reformed."

"We must not let China persecute these unfair and un-reciprocal trade practices," Kudlow said.

Trump fights tariffs on Chinese imports

Democratic presidential candidate Beto O & Rourke said the US needs to work with allies to hold China accountable for trade. He said he feared Mr. Trump would drive the global economy into recession.

"This current trade war, in which the President has entered our country, does not work," said O & Rourke. "The farmers in this country are hammering hell."

Last month, the US Federal Reserve lowered its key interest rate, which includes many loans to households and corporations, by a quarter to 2% to 2.25%. It is the first interest rate cut since December 2008 in the depths of the Great Recession. US Federal Reserve Chairman Jerome Powell said the Fed was worried about the aftermath of Trump's trade war and the sluggish overseas economy.

"Weak global growth and trade tensions are affecting the US economy," he said.

Trump violates historical norms and criticizes Powell to the utmost for blaming the country's central bank for overpaying interest rates in the last two years.

Peter Navarro advising Mr. Navarro. Trump's trade policy shared this feeling during his appearance on Sunday in "Face the Nation" with Margaret Brennan.

The Federal Reserve chairman should look in the mirror and say: "I raised interest rates too far, too fast, and I cost that economy a full percentage point of growth," Navarro said.

The White House officials, Peter Navarro, downplay the impact of Chinese tariffs on consumers.

The government's trade war with China, though tariffs are taxes paid by US importers, not China, and often higher prices

Kudlow himself told Fox in May that US consumers and corporations are ultimately going to pay the toll levied by the administration on billions of dollars of Chinese goods.

Mr. Trump recognized at least one possible impact when he proposed a 10% tariff increase for many Chinese-derived items such as cell phones, La ptops, video game consoles, some toys, computer monitors, shoes and clothes stopped. [19659003] "We're only doing it for Christmas, just in case some of the tariffs might have an impact," the president told reporters in New Jersey.

Navarro would not even go that far and say Sunday. "There is no evidence that consumers in the US have any of this."

Kudlow was interviewed by NBC in Meet the Press and Fox News Sunday. O & Rourke talked about NBC and Navarro also appeared in CNN's "State of the Union" and CBS News.

Mr. Trump's trade war with China was criticized by Democrats who wanted to challenge him in 2020.

"There is clearly no strategy to deal with the trade war in ways that will actually produce results for American farmers or American consumers," said Mayor Pete Buttigieg of South Bend, Indiana, a Democratic presidential candidate. He told CNN it was "a dumb affair" to believe that an increase in tariffs would force China to change its economic approach.

Dem-candidate Andrew Yang defends his plan to give each American $ 1,000 a month] Andrew Yang insists that Mr. Trump's approach does not work.

"We need to curb some of the abuses on the Chinese side," Yang Brennan said in "Face the Nation," adding, "But the trade war is leading the global economy in the wrong direction."

Mr. Trump insists that the US economy is looking for growth after the conclusion of trade agreements, but after months of negotiations between China and the US, no trade agreement is in sight.

Paula Reid contributed to this report.

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