US President Donald Trump has tried to reassure markets about the risk of the US falling into a recession by saying the economy was doing “tremendously well,” the media reported on Monday.
“I don’t see a recession. The world is in recession right now,” the BBC quoted Trump as saying to mediapersons before boarding the Air Force One from New Jersey on Sunday.
“I don’t think we’re having a recession. We’re doing tremendously well, our consumers are rich, I gave a tremendous tax cut, and they’re loaded up with money.”
He also mentioned last week’s healthy profits from Walmart, the US retailer often described as the world’s biggest, and pointed to a strong performance from US consumers. “Most economists actually say we are not going to have a recession. Most of them are saying we will not have a recession, but the rest of the world is not doing well like we are doing.”
The President’s remarks came after White House economic adviser Larry Kudlow had told Fox News earlier on Sunday that the US economy remained “in pretty good shape.”
“There is no recession in sight,” Kudlow said. “Consumers are working. Their wages are rising. They are spending and they are saving.” Markets around the world were rattled last week by the movement in the bond markets, which also knocked stock markets, the BBC reported.
On August 14, US stock markets fell by about 3 per cent when the yield curve inverted, although they had recovered lost ground by the end of the week. Last month, the US Federal Reserve cut interest rates for the first time since 2008, and more cuts were expected.
The US economy also slowed last quarter, growing by 0.5 per cent, its weakest performance in more than two years.