Reportedly, Larry Kudlow—Director of the NEC (National Economic Council)—said that the U.S. economy would persist to grow at a solid rate through the rest of 2019 even though the U.S. and China do not attain a trade deal. Kudlow said to CNBC, “The U.S. economy is quite strong. I think we are in a very good stage and we will maintain a 3% development rate in this year. That 3% figure is not dependent on a China deal that may not be acceptable for American economic interests.” Kudlow further added, “What had changed are the lower tax rates, opening up the energy sector, massive deregulation, and various trade reforms.”
The equity markets declined sharply in May following China and the U.S. increased tariffs on billions of dollars of each other’s products. Before that, executives on both sides hinted that development was being done on the trade front. This caused financial markets to charge in a decision of the U.S.-China trade spat. Kudlow also ignored the release of weaker-than-anticipated economic data from the past week. The U.S. financial system added just 75,000 jobs in the last month, the Labor Department reported. The economists’ survey by Dow Jones anticipated a profit of 180,000 jobs. In the meantime, in the U.S. manufacturing activity increased in the last month at its slowest rate since October 2016.
Speaking of the trade deal, recently, Clete Willems—President Donald Trump’s Former Trade Advisor—stated, “Do not wait for a China deal at G-20.” Willems said he thinks that the U.S. would emerge from its long-lasting conciliations with China with a contract but it would not occur at the G-20 summit by the end of this month. Willems—who was the deputy director of the NEC and had an important role in negotiating in last multilateral summits—asserted that the high-profile meeting in Japan can be the catalyst for ending a deal with Beijing.