Tags: navarro | economy | stock | market | dow | china

Navarro: Stock Market, Economy 'Rock Solid' Despite Trade War

White House trade adviser Peter Navarro. (Sipa via AP)

By    |   Tuesday, 06 August 2019 01:55 PM

The stock market and the economy are "rock-solid," White House Trade Adviser Peter Navarro said Tuesday, even with China intensifying the trade war by dropping its currency to its weakest level in over a decade. 

"I think all of us here in this administration were saying the same thing, which is the economy is rock-solid, and the stock market is rock-solid," Navarro told Fox News' "America's Newsroom," citing "rapid economic growth, rising wages, and record low unemployment."

Navarro pointed out that when the economy is strong, the market will be strong, but still, changes are needed to get past what's on the Dow. 

"We need the U.S.-Mexico-Canada agreement passed by October," said Navarro. "That is going to give us a really nice boost in growth and bring jobs back home here." 

In addition, the Federal Reserve, before the end of the year, has to lower interest rates by at least another 75 basis points or even 100, to bring interest rates in the United States in line with those from the rest of the world, Navarro said.

He said the Dow's drop on Monday marked a "classic day of rational pessimism."

"What happens on those kinds of days, the Dow starts going down, you get the day traders coming in, program traders, it kind of takes on a life of its own," said Navarro. 

Navarro also called on the Federal Reserve to cut interest rates by another three-quarters of a point to full point by end of year to bring U.S. rates into line to with rates elsewhere.

"The Federal Reserve before the end of the year has to lower interest rates by at least another 75 basis points or 100 basis points to bring interest rates here in America in line with the rest of the world," Navarro told Fox News. "We have just too big a spread between our rates and that costs us jobs."

Meanwhile, the United States Monday called China a "currency manipulator," a designation that gives the U.S. Treasury and President Donald Trump more tools to counteract their action, said Navarro.

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The stock market and the economy are "rock-solid," White House Trade Adviser Peter Navarro said Tuesday, even with China intensifying the trade war by dropping its currency to its weakest level in over a decade.
navarro, economy, stock, market, dow, china
346
2019-55-06
Tuesday, 06 August 2019 01:55 PM
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