Trump economic advisor sees no U.S. recession ahead

Agence France-Presse

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Trump economic advisor sees no U.S. recession ahead
United States National Economic Council Director Larry Kudlow says the US economy is 'holding up nicely' amid the novel coronavirus outbreak

WASHINGTON, USA – President Donald Trump’s chief economic advisor said Tuesday, February 25, he sees no downturn looming for the United States economy, even as the coronavirus epidemic hits the Chinese economy and Germany and Japan flirt with recession.

In an interview broadcast on CNBC, Director of the National Economic Council Larry Kudlow replied “yes, we can,” when asked if the US could continue growing should a recession hit the rest of the world.

He also downplayed the economic impact of the coronavirus, saying, “I don’t think it’s going to be an economic tragedy at all.”

“The numbers are saying the US [is] holding up nicely,” Kudlow said, adding “China is going to take an awfully big hit.” (READ: Most small firms in China yet to reopen after virus outbreak)

He pointed to indicators from regional central banks and new US consumer confidence figures released Tuesday that show continued economic health and no disruption in supplies even as production from some Chinese factories is halted over the virus.

He estimated it will take another 2 to 3 weeks for the situation to become clear and welcomed the call by US health authorities for local governments, business, and schools to be prepared for an increase in cases of COVID-19.

He also downplayed speculation that the Federal Reserve would make an emergency rate cut to support the economy.

“I’m not hearing that either publicly or privately. We’re in touch with the Fed people all the time,” he said. “I’m not hearing the Fed is going to make any panic move.”

Speaking at a conference in Washington on Tuesday, Fed Vice Chair Richard Clarida said that “if developments emerge that, in the future, trigger a material reassessment of our outlook, we will respond accordingly.”

“It is still too soon to even speculate about either the size or the persistence” of the virus’ effects on the global economy, “or whether they will lead to a material change in the outlook,” he said.

Wall Street closed sharply down for the second day in a row, but Kudlow earlier in the day said he saw no cause for alarm, instead calling on investors to take advantage of low prices, echoing comments by Trump the day before. – Rappler.com

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