President Donald Trump’s chief economic adviser said U.S. economic growth can continue at 3 percent in 2019 and beyond, even as many private economists look for a slowdown this year as the impact of the 2017 Republican tax cuts wears off.
Larry Kudlow, appearing on “Fox News Sunday,” also rejected a suggestion that a U.S.-China trade deal is in trouble.
A March signing ceremony might be off the table, but Kudlow said he was “optimistic” that Trump and Chinese President Xi Jinping would meet at some point to ink a pact.
Looking ahead to Trump’s 2020 budget proposal, due on Monday, Kudlow called the expected proposals for a five-percent across-the-board reduction in domestic spending tough but necessary. “I think it’s exactly the right prescription,” he said.
The former CNBC broadcaster brushed off worries about the rising U.S. budget deficit. Trump’s budget is likely to signal that the federal budget can be balanced in 15 years.
“I don’t think good growth policies have to obsess, necessarily about the budget deficit,” Kudlow said. “We are going to point a steady glide path to lower federal spending” and borrowing as a share of GDP.
On the China trade negotiations, Kudlow lauded overnight news that China has “accepted our currency proposals to have stable currencies.”
China and the U.S. have reached consensus on many “crucial” issues and have discussed the need to observe the “autonomy” of each other’s monetary policy, People’s Bank of China Governor Yi Gang said during a press conference Sunday during the annual National People’s Congress in Beijing.
Yi didn’t say on which issues they had reached consensus.
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