In the New York Post today, reporter Bob Fredericks, writes on comments made by Treasury Secretary, Steve Mnuchin, on the economy. Though many reports out of media outlets are stating that a recession is on the way, the forecast out of the White House is calling for pretty clear skies. Here’s the report:
Treasury Secretary Steven Mnuchin on Monday offered a rosy view of the US economy, minimized the impact of President Trump’s trade war with China — and teased a “middle class tax cut” as the 2020 election looms.
“I think there’s no question the US economy is in very good shape. As we look around the world, there’s no question that China is slowing, Europe is slowing — the US is the bright spot of the world,” Mnuchin told reporters after an appearance on Fox Business Network.
“And in regards to a middle class tax cut, you know, we’ll be looking at tax cuts 2.0, something that will be something we’ll consider next year. But right now, the economy is in very, very good shape.”
Trump had also floated another round of tax cuts prior to the 2018 midterm elections, but none has materialized as the nation’s debt and deficit continue to climb.
Mnuchin told Fox Business that the administration has “not yet seen any impact on the US economy” as the result of the escalating trade war, and predicted a “very robust finish of the year” with “no signs of recession” down the road.
He acknowledged that there “have been certain situations where there have been difficulties for companies,” but that Team Trump “has done a very good job managing the exception process on a case-by-case basis.”
The Wall Street Journal reported in August that Chinese imports of US farm goods fell by 50 percent between 2017 and 2018 as the tariffs made those agricultural products more expensive.
And farm bankruptcies have risen steadily since Trump took office, according to the American Farm Bureau Federation.
The administration responded by handing out billions to help keep struggling farmers afloat.
Mnuchin predicted that the world’s two largest economies would reach an agreement on trade — but warned that Trump wouldn’t back down even as the US economy slows.
An additional 15 percent tax on Chinese imports went into effect on about $112 billion worth of goods on Sept. 1, with another round set to take effect in mid-December.
China retaliated with its own tariffs on more US imports.
“They’re coming here. I take that as a sign of good faith that they want to continue to negotiate, and we’re prepared to negotiate,” Mnuchin told Fox Business, referring to Chinese negotiators.
- Bob Fredericks