President Donald Trump’s top economic adviser said there’s “no recession in sight” following a jobs report showing the U.S. added 312,000 jobs in December.
Larry Kudlow, director of the White House National Economic Council, told Bloomberg TV the employment results Friday are “a blowout” that show “a much better, more optimistic picture” after recent declines in the U.S. stock market.
Average hourly earnings rose 3.2 percent from a year earlier, more than projected and matching the fastest pace since 2009, the Labor Department reported Friday. Meanwhile, the jobless rate rose from a five-decade low to 3.9 percent, reflecting more people actively seeking work.
Despite "gloom" in the markets, fear of a recession is overblown, the veteran financial guru and former Ronald Reagan adviser said.
"There's no recession in sight," said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.
"I know this has been a gloomy period and I know people are concerned about the stock market," said Kudlow, who served as the Trump campaign's senior economic adviser.
"The American economy is growing 3 percent, job gains are huge and businesses are investing big time," Kudlow said.
"It's a much better optimistic picture than what we've been getting in the last month or two," Kudlow said.
Still, investors fear that the U.S. would not be immune to a global slowdown. Kudlow acknowledged economic weakness abroad but said as long as the United States is on the "prosperity track we'll be just fine."
"My basic model has always been that the U.S. leads," Kudlow said. "When these things go right then hopefully the rest of the world will follow."
Material from Bloomberg and Reuters has been used in this report.
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