White House: No recession despite global economic turmoil[/rtl]
[rtl]Date of edit:: 2019/8/18 20:33 • 79 times read[/rtl]
WASHINGTON (Reuters) - White House officials have backed away from fears that economic growth may falter, saying they "see little risk of recession" despite a volatile week in global bond markets.
"There is no recession on the horizon," said White House economic adviser Larry Kudlow. "Consumers are working. Their wages are rising. They are spending and saving. I think we're good."
US stock markets fell last week amid fears of a "recession", with all three major indices in the United States closed at about 3 percent last Wednesday, only to double losses by Friday on expectations that the European Central Bank will cut interest rates.
Trade adviser Peter Navarro refused to take warnings last week, telling ABC that "good economic dynamics encourage investors to transfer money to the United States."
He added, "We have the strongest economy in the world, and money comes here for our stock market.
"This kind of escape to safety is usually driven by fears of global economic troubles, and in this case, the possibility that the Trump administration's economic tariff with China will curb investment and business growth worldwide," Navarro said.
The US trade official stressed that "tariffs on Chinese goods do not hurt anyone here."
The Fed has raised interest rates seven times in the past two years as part of a plan to restore normal monetary policy following emergency steps taken to combat the global financial crisis and recession in 2007-2009.