Rejecting economic speculation the sliding stock market is signaling an oncoming recession, White House chief economic adviser Larry Kudlow called the talk "nonsense" and added "recession is so far in the distance I can't see it."
"I am reading some of the weirdest stuff about how recession is around the corner –nonsense," Kudlow told reporters Tuesday. "My personal view, our administration's view, the recession is so far in the distance I can't see it."
Without directly referencing Republicans' midterm election losses in the House, Kudlow did admit "the economy is very sad" the past two weeks, adding market corrections come and go and the economic indicators suggest "economy is doing very, very well."
"We're clicking on all cylinders, and in comes the rising, let's not forget, in comes the rising," Kudlow said offering a more favorable report than other media amid stock market declines.
". . . This is going to be the best business investment cycle we will have in 20 years. We haven't had one. I am going to be totally nonpartisan here – Dems, Republicans, really since the late '90s – I think now it is resuming. That's a key part of our planning and our own incentives."
Saying he was nicer than other critics of Goldman Sachs Group Inc. analysis about declining GDP in 2019, Kudlow rejected tamped down expectations even amid a Democratic-controlled house.
"I don't even remotely agree with that," Kudlow said of the Goldman Sachs numbers he admitted has frequently seen as being off.
Democrats controlling the House cannot overrule President Trump's administration and the Republican-led Senate, even if Tax Reform 2.0 is "not going to happen in the lame duck" Congress, Kudlow said.
"I don't see any results that will roll back the Trump economic growth policies, which were: low tax rates, small businesses, large businesses, individuals, middle income, low marginal tax rates – way back – they're rolling back deregulation across the board, tremendous surge in unlocking of energy," Kudlow said. "These are the big forces behind this recovery, which has jumped from less than 2 percent to over 3 percent growth."
Kudlow, a supply-side economist, also noted inflation is not only in check amid growth, but it is now coming down.
"One of the reasons inflation is coming down – you know we're disinflating? . . . we are increasing, we are creating the supply of goods and services," he said. ". . . If you have a bumper crop of apples what happens? The price comes down. We're seeing that throughout the economy.
". . . We are creating incentives to increase the economy's potential to grow."
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