Although some prominent economists have warned that, despite the current strong economic gains, an impending recession is on the horizon, Director of the National Economic Council Larry Kudlow dismissed those concerns.
“I just don’t see where this is going to end,” Kudlow said on Sunday during an interview with FOX Business’ Maria Bartiromo.
Even Federal Reserve Chair Jerome Powell has struck a note of optimism about the economy: In comments he made on Tuesday, Powell said the combination of steady, low inflation and very low unemployment proves the country is going through “extraordinary times,” but maintained the central bank’s position of gradually raising interest rates.
At 3.7 percent, the unemployment rate is at a 49-year low. And although job creation faltered in September, falling below analysts’ expectations, Kudlow previously said it would likely top 2.4 million by the end of the year.
“Now look, 2020 is a couple years away,” he said. “I think we’re in the biggest capital goods, business investment spending in 20 years. This is an economy that looks more like the 80s and 90s.”
In September, David Stockman, the former budget director for President Ronald Reagan, warned that the U.S. economy was already beginning to show signs that it’s ready to roll over into the next recession, largely because of a tightening monetary policy by the Fed and an international trade war.
But at the end of the month, the U.S., Canada and Mexico concluded months of fraught negotiations and agreed upon a revised version of the North American Free Trade Agreement -- a deal that will open up a “lot of markets” for American farmers.
“It’s a big help to American workers, you know main street, blue-collar workers,” he said.