Mon, 16 Sep 2019

Larry Kudlow says he doesn't see a recession coming

Lola Evans
19 Aug 2019, 10:36 GMT+10

WASHINGTON, DC - U.S. President Donald Trump's chief economic adviser has ridiculed the idea that the country is facing a recession.

After an extraordinary week of volatility, marked by a roller-coaster run on stocks exchanges, including an 800 points drop by the Dow Jones, and a drive to safe-haven currencies amidst plunging bond yields, Larry Kudlow was calm, collected and optimistic as he did a round of interviews on Sunday TV news shows. He talked with NBC's "Meet the Press" and "Fox News Sunday."

"No, I don't see a recession," he told the networks. "We're doing pretty darn well in my judgment. Let's not be afraid of optimism."

A sharp drop in consumer confidence in July, and a long drawn-out trade war with China have been undermining investors confidence.

Out-of-left-field statements from President Trump have exacerbated concerns. Sudden announcements of new trade tariffs, then taking them off the table only to have them re-imposed - and then delayed - in part, have caused confusion and led to concerns a deal will not be done.

Kudlow however defended the administration's attempts to restructure trade relations with China.

"We cannot let China pursue these unfair and unreciprocal trading practices," he said.

Another topic that came up Sunday was the recent idea circulating that President Trump wants to buy Greenland.

Asked by Dana Perino who was standing-in for regular host Chris Wallace, "If you get asked to go do a survey about purchasing Greenland, can i go with you?," Kudlow quipped: "Maybe I will run the central bank."

"It's an interesting story. It's developing, we're looking at it," Kudlow said, regaining his composure. "We don't know."

"Years ago, Harry Truman wanted to buy Greenland. Denmark owns Greenland. Denmark is an ally. Greenland is a strategic place up there and they've got a lot of valuable minerals. I don't want to predict it now."

"I'm just saying the president, who knows a thing or two about buying real estate, wants to take a look at a potential Greenland purchase," he said.

Kudlow, 71, spent many decades in the financial sector, rising to become chief economist at Bear Stearns.

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