Reuters
White House economic adviser Larry Kudlow.
White House National Economic Council director Larry Kudlow on Friday dismissed the weak February jobs report as “silly” and “fluky” and said he still expects the economy to grow at a 3% annual rate this year.
The economy created 20,000 jobs in February, the worst report since 2017.
Read: U.S. job gains in February are smallest in 17 months
‘I think it’s a very fluky number. ... I wouldn’t pay any attention to it, to be honest with you.’ White House economist Larry Kudlow
In an interview on CNBC, Kudlow said timing issues and winter seasonal issues impacted the data.
“We are the hottest economy in the world. Despite this silly, fluky number, we are on a roll, and I am going to say that the outlook for the American economy is still 3%-plus,” he said.
Kudlow’s optimistic forecast is an outlier. Private-sector economists think economic growth will slow to 2.5% annual growth this year, according to the National Association for Business Economics. Many Federal Reserve officials have said they expect growth closer to a 2% rate this year.
Kudlow said the meager job growth would be revised up. He highlighted the 3.4% annual gain in wages.
Turning to China trade negotiations, Kudlow said talks “are moving along very nicely,” and there may be a meeting between Trump and Chinese President Xi Jinping “late this month or early next month.”
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He warned that if Trump doesn’t get a “good deal,” then he might pull out of the talks, in the same way he ended his summit meeting with North Korean leader Kim Jong Un.
“It could apply to [China] trade — I’m not forecasting,” he said. “I’m not predicting that we’ll walk away. I’m just saying the president has made clear how tough a negotiator he can be.”
Kudlow said the White House 2020 budget, expected to be released next week, will forecast a “steady glide path” toward lower deficits as a percentage of GDP. The White House reportedly will propose a 5% across-the-board reduction in domestic spending.
U.S. stocks traded sharply lower on Friday morning, with the Dow Jones Industrial Average DJIA, -0.47% sliding over 180 points and the tech-heavy Nasdaq Composite COMP, -0.53% also lower.
Read on: Trump said to have concluded his path to a second term runs through the stock market
