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Mnuchin Defends Economic Outlook Amid Recession Concerns

Steve Mnuchin, the former Treasury Secretary, has publicly stated his disagreements with analysts raising alarms about a potential economic downturn. He believes that the reactions to the new administration’s policy alterations are somewhat exaggerated.

“I don’t think anybody should look at what’s a natural, healthy correction of these indexes as indicating that the economy’s in trouble,” he remarked during an interview on CNBC’s “Squawk Box.”

The stock market has experienced significant volatility in recent days, influenced by President Trump’s aggressive trade policies toward Canada, Mexico, and China. In addition, the Labor Department’s recent report indicated an increase in consumer prices during Trump’s initial month in office. While some economists have begun to express worries about an impending recession, Mnuchin has a different perspective.

“I don’t think we’re going to have a recession,” he asserted. “I don’t think the outlook looks like we’re going to have a recession.”

President Trump has also remained noncommittal regarding the economic outlook, having downplayed recession concerns in recent statements.

In his remarks, Mnuchin emphasized the importance of focusing on long-term market trends rather than the fluctuations that occur on a daily basis. “I always said I was focused on the stock market longer term, not where it was on any day,” he remarked, adding that he views the long-term stock market performance as a significant indicator of economic health.

He noted that there are similarities between Trump’s current economic policies and those from his presidency. “His focuses on the economic issues are tax cuts, regulatory relief, and trade, and the president has always believed in having tariffs,” he explained. “So, I think that’s reflected in the market today.”

Source
thehill.com