In an attempt to calm any fears of a possible recession, Donald Trump and his chief trade advisers insisted on Sunday the US is not facing a recession.
"I don’t see a recession," Trump said, preparing to fly to Washington. "We’re doing tremendously well. Our consumers are tremendously rich. They’re loaded up with money. Walmart is through the roof. We’re not going to have a recession – the world is in a recession right now."
While markets appear to seriously fear a recession - one that could cost Trump greatly in the polls next year - Trump appears unfazed. He also spoke briefly about the tariffs imposed on China.
"China’s doing very poorly – the worst in 27 years – because of what I’ve done," he said. "They are losing millions of jobs in China. We’re not paying for the tariffs, China is paying for the tariffs. Other countries maybe but in the case of China, China is eating the tariffs – at least so far."
Speaking to ABC’s This Week, trade adviser Peter Navarro defended US policy, predicted a "strong economy through 2020" and disputed a bond-market indicator of approaching recession that this week sent stocks into their largest one-day sell-off this year.
On Fox News Sunday, economic adviser Larry Kudlow insisted:
"There’s no recession on the horizon. What’s wrong with a little optimism?"
Navarro, the leader of the White House’s controversial China policy, claimed the bond-market indicator – a reversed spread in yields between long-term and short-term bonds – had not in fact occurred.
"We did not have a yield curve inversion right now, by technical standpoints."It is flat, not for bad reasons, but for good reasons. I can tell you with certainty that we’re going to have a strong economy through 2020 and beyond,” he said.