UPDATED 1:57 PM PT — Wednesday, January 16, 2019
White House Press Secretary Sarah Sanders recently reaffirmed the Trump administration’s economic stance, dismissing claims the partial government shutdown will severely hurt the economy.
While speaking in front of the White House Wednesday, Sanders downplayed how much the shutdown — now in its 26th day — is impacting economic growth. She pointed to the policies that have put the U.S. economy in the current situation that it is in, and claimed the long term out look is still strong.
“I know there has been some impact, but at the same time, again, we are focused on the long term economic principles that the president has laid out, whether it is through deregulation, tax cuts that have helped give us the booming economy that we have,” stated Sanders. “We know that wages are still rising and that unemployment is still at the lowest that it has been, historically, and those are good things for this country and things that we are going to build on.”
This comes after White House Economic adviser Kevin Hassett acknowledged earlier in the week that the shutdown may impact the economy a little more than previously estimated. He said the longer the shutdown goes on, the worse it will be in the short term for growth. However, Hassett believes everything will even out if the shutdown ends before the end of the quarter.
Meanwhile, something that will likely help the U.S. economy greatly is a trade deal with China. After the two sides had mid-level talks last week, we are roughly two-weeks away from China’s top negotiator heading to the U.S. to meet with Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
Markets have been positive in January in anticipation of a potential deal, which is something financial experts believe will continue if a deal is reached.
“But I do predict, if there was a resolution between the U.S. and China related to trade, we would see a surge in investment sentiment,” said Blackrock CEO Larry Fink.
If a deal is reached between the world’s two largest economies, it would be considered by many as President Trump’s biggest victory to date. The high-level meeting between the two sides is slated for January 30, 2019.