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Trump Says Recession Not On Horizon, Supports Trade War

President Trump stated on Sunday that he saw no recession in the near future, despite market volatility reaching precarious levels. Trump informed reporters that the US wasn’t going through a recession. He claimed the US was doing extremely well due to his recent tax cuts, which ensured consumers had more money to spend.

Bonds markets flashed emergency signals on Wednesday, which are normally seen to precede economic recessions. Yields on 10 year period Treasury bonds have fallen below the yields on 2 year period Treasury bonds. The DJIA fell nearly 800 points, which is around 3% of its total value. The bond market’s performance has left investors spooked.

Trump had a conversation with the chiefs of Citigroup, BoA and JP Morgan Chase. This came on the heels of a stock market crash on Wednesday. Trump asked these executives for their opinions on the US consumers’ financial health, as per reliable sources. These executives stated that while consumers were doing extremely well, it could be better if problems like the ongoing US-China trade tensions were resolved. Larry Kudlow, Trump’s economic adviser stated on Sunday that low unemployment rates and sustainable retail sales indicated that the US economy was going strong.

Kudlow stated that the economy was in great shape. However, US manufacturing levels have fallen to their lowest since 2009, due to slower hiring rates and weakening demand. Peter Navarro, the WH trade adviser refused to entertain claims of a yield curve inversion. He stated that this curve had gone flat, which was a sign of increased foreign capital flows to the US. This has caused a spike in long-term bond prices and lowered yields. He argued that this flat curve was due to a strong economy, led by Trump.

Both Navarro and Kudlow have strongly defended the ongoing trade war against China.

Diane Sorensen
Content Writer & Editor At Industry News Works

After studying the Astronomical Sciences, Diane continued to write about space and the universe. Because of her passion and curiosity about topics related to science and astronomy, as well as his understanding of scientific terminology, she is responsible for the coverage of the science section. She is very enthusiastic in studying missions, launches, and discoveries of the space. Her knowledge about the Space domain is of great help to others too.

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