‘Recession is so far in the distance I can’t see it!’ he said at the White House
President Trump‘s chief economic adviser said Tuesday that he doesn’t expect a slowdown in growth despite a significant market dip.
‘Corrections come and go,’ he told reporters at the White House, saying that the economy is strong overall.
‘I’m reading some of the weirdest stuff how a recession is in the future,’ Kudlow said. ‘Nonsense.’
‘Recession is so far in the distance I can’t see it,’ he said after appearing in a Fox Business Network interview.
‘Keep the faith. It’s a very strong economy.’
The Dow closed at 4pm on Monday at 24,465, 551 points down from Monday after struggling all day.
All of its 2018 gains have now been wiped out.
The dip has been largely driven by plummeting tech stocks which have not responded well to uncertainty surrounding the US’s relationship with China.
What began as a tech stock sell-off though has trickled through the market and now other industries are also feeling the pressure.
Facebook, Amazon, Apple, Netflix and Google’s parent company Alphabet were all down on Tuesday.
Kudlow had similarly rosy predictions in December 2007, the month the last significant U.S. recession began.
‘There’s no recession coming. The pessimistas were wrong. It’s not going to happen,’ he wrote at the time in a National Review essay.
‘In 2006, they were certain a recession was just around the corner. They were wrong,’ he said then.
Since the 2016 Presidential Election, the markets have been on a continuous winning streak and have gained more than 6,000 points.
The Dow is now however on track to wipe out its 2018 gains entirely.
The slump is the result of a combination of pressure from trade tensions with China and Silicon Valley scandals which have rocked the market’s faith in the once unstoppable companies.
Find the original post here.
