White House economic adviser Larry Kudlow contends that the strong Trump economy isn’t a sugar high.
The veteran financial guru and former Ronald Reagan adviser spoke to CNBC hours after the government said U.S. job growth rebounded sharply in October and wages recorded their largest annual gain in 9-1/2 years, pointing to further labor market tightening that could encourage the Federal Reserve to raise interest rates again in December.
The Labor Department’s closely watched monthly employment report on Friday also showed the unemployment rate was steady at a 49-year low of 3.7 percent as 711,000 people entered the labor force, in a sign of confidence in the jobs market.
Average hourly earnings rose five cents, or 0.2 percent, in October after advancing 0.3 percent in September. That boosted the annual increase in wages to 3.1 percent, the biggest gain since April 2009, from 2.8 percent in September.
“The economy is booming. We're in a boom. It’s not a sugar high,” said Kudlow, the head of the National Economic Council that advises President Donald Trump.
“And the expansion of this economy is coming from the tax cuts and so forth,” said Kudlow.
“It looks terrific,” said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.
“My advice to the president is this: we are in a noninflationary economic boom. I don't want to see anything really change," said Kudlow.
"I don't want to see a new Congress that might raise taxes and undo the good that we have done or start raising regulations and undo the good we have done or stifle the energy boom. We're growing at 3.5%,” said Kudlow, who served as the Trump campaign's senior economic adviser.
“That's the fastest in a very long time. I just want to stay the course on this. A lot of good things have happened people said it would be impossible they were wrong. it is happening. Let's just stay the course,” said Kudlow.
Kudlow said there are “more people working successfully, earning higher wages for the first time in 20 years,’ he said. Kudlow said such a habitat “is not inflationary, it's a good thing.”
“My friends on the other side of the aisle said it would be impossible. It's happening. Our economy, frankly, is much stronger and in a better upward trajectory than China's is and that is not lost on either of the presidents,” said Kudlow.
Nonfarm payrolls increased by 250,000 jobs last month as employment in the leisure and hospitality sector bounced back after being held down by Hurricane Florence, which drenched North and South Carolina in mid-September.
Sustained labor market strength eased fears about the economy’s health following weak housing and business spending data. President Donald Trump cheered the robust jobs report, which came less than a week before the midterm elections that will decide who controls the U.S. Congress, Reuters explained.
“These are incredible numbers,” Trump tweeted.
"Wow! The U.S. added 250,000 Jobs in October - and this was despite the hurricanes. Unemployment at 3.7%. Wages UP! Keep it going, Vote Republican!" Trump said.
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