Tags: kudlow | shutdown | economy | damage

Kudlow: No Permanent Economic Damage From Shutdown

Monday, 28 January 2019 05:18 PM

White House economic adviser Larry Kudlow said the recent partial government shutdown inflicted "no permanent damage" to the economy.

"I still think the economy is very strong," the head of the National Economic Council that advises President Donald Trump said at a White House briefing. 

“As I have said many times I think you have just a whole bunch of very temporary factors and now that the government reopened the switch goes right back on. There’s certainly no permanent damage to the economy,” the veteran financial guru and former Ronald Reagan adviser said.

Kudlow said he didn't think the shutdown was disruptive to the economy becase of such recent strong economic reports as low unemployment claims and a rise in the industrial production number from the Federal Reserve.

"A scattered look at the kinds of data points suggest to us that we're still in a very strong mode right now and I use the 3% as a longer term view but I also think it pans out in the short run," said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

The government reopened fully on Monday after President Donald Trump and Congress agreed on temporary funding - without the $5.7 billion he demanded toward building his long-promised wall along the U.S.-Mexico border. Lawmakers have until Feb. 15 to address border security to avoid another closure.

According to a report by the nonpartisan Congressional Budget Office, the longest government shutdown in the country's history cost the economy about $11 billion.

Kudlow wouldn't really confirm or deny that amount. 

“We frequently disagree with CBO. They're doing the best job they can. I get that. I won't acknowledge any of that right now,” he said. “In a $10 trillion economy it is hard to make the best guesstimates of those kind of small fractions of numbers,” said Kudlow, who served as the Trump campaign's senior economic adviser.

Material from Bloomberg and Reuters has been used in this report.

© 2019 Thomson/Reuters. All rights reserved.

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National Economic Director Larry Kudlow sais the recent partial government shutdown inflicted "no permanent damage" to the economy.
kudlow, shutdown, economy, damage
Monday, 28 January 2019 05:18 PM
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