MELISSA: POSITIVE SIGNS FOR THE
ECONOMY, AMERICAN CONSUMERS ARE
SPENDING MORE IN MAY, JOINING US
KEVIN HASSETT, WHITE HOUSE
COUNSEL OF ECONOMIC ADVISOR
CHAIRMAN, WHAT DO YOU MAKE OF
THIS DATA, HOW DO YOU COMPARE IT
TO THE JOBS NUMBER, THE LAST ONE
OF LIGHT, HOW DO YOU RECONCILE
THE TWO DIFFERENT DATA POINTS.
>> NUMBERS TODAY WERE A BREATH
OF FRESH AIR, THERE WERE A
COUPLE THINGS WE SAW THAT WERE A
LITTLE BIT IN BETWEEN.
AND ONE THING THAT I HAVE BEEN
SAYING, ON FOX BUSINESS FOR A
WHILE IS THAT INCOME GROWTH IS
SO HIGH WE'RE EXPECTING
CONSUMPTION GROWTH WILL CATCH
UP, GIVEN WE HAD REVISION TO
APRIL, STRONG MAY, THE CONSUMER
IS FINALLY SPENDING THE HIGHER
PAYCHECKS, I THINK THAT MARKET
GOT A LITTLE BIT AHEAD OF ITS
WORRIES ABOUT COLLAPSE OF GET
TO, WE'RE ON TRACK FOR A 3%
YEAR.
MELISSA: REALLY?
DO YOU THINK WE COULD SEE THINGS
ACCELERATING RIGHT HERE, GETTING
BETTER?
>> YEAH, I THINK IF, YOU THINK
ABOUT IT YOU MENTIONED THERE
WERE SOME UNCERTAINTY.
ALMOST EVERYTHING IS GETTING
RESOLVED BUT RIGHT NOW STILL A
QUESTION MARK IF WE CAN WORK OUT
A DEAL WITH CHINA.
THERE IS NO MUCH, WITH MEXICO
AGREEING TO CONTROL THE BORDER,
AND NAFTA LIGHT, THAT WE BELIEVE
WILL PASS SOMETIME IT YEAR.
AND YOU ADD THAT UP THERE IS AS
UP UPSIDE RISK AS DOWN SIDE RISK
RIGHT NOW, UNTIL WE SAW A GOOD
SPREE
CEREE
CENTE
CENTRAL PRODUCTION AND RETAIL
SALES TODAY, YOU HAVE TO WONDER.
IN THIS CASE WE HAVE REVISION OF
PAST SPENDING, WE'RE EXPECTING
SPENDING TO GO UP BECAUSE INCOME
GROWTH IS SO HIGH, WE'RE ON
TRACK FOR A 3% YEAR.
MELISSA: DO YOU THINK THAT
TARIFFS WILL BE A DRAG WHETHER
IT IS BATTLE WITH CHINA OR
ANYWHERE ELSE, WHETHER TO DO
WITH FARMING OR ANY OF THE
PLACES WHERE WE HAVE SEEN THE
BUMPS ALREADY HAPPEN, DO YOU
THINK THAT WILL BE A DRAG?
>> WHAT HAPPENED IS THAT THERE
ARE A NUMBER OF TARIFFS PUT IN
PLACE, THAT WE CAREFULLY DESIGNS
TO PUT MAXIMUM PRESSURE ON CHINA
WHILE CAUSING MINIMUM HARD TO
U.S. CONSUMER, WE HAVE STRONG
CONSUMER SPENDING TODAY WITH
INFLATION NUMBERS THAT ARE
HEADED SOUTH, INFLATION
DECELERATING, SUGGESTS THAT OUR
TARGETING OF TARIFFS HAVE WORKED
WELL, THERE PRESSURE ON CHINA TO
COME TO NEGOTIATING TABLE BUT WE
HAVE PUT TARIFF TO THING WE HAVE
CLOSE SUBSTITUTES FOR DOES NOT
COME HOME TO HURT THE CONSUMER
VERY MUCH, DOES NOT MEAN THERE
IS A LOT OF GAIN TO BE HAD IF WE
HAVE A DEAL WITH CHINA, THAT IS
ANOTHER REASON WE HAVE COULD A
BIG UPSIDE IN SECOND HALF OF THE
YEAR.
MELISSA: FARMERS HAVE BEEN HURT,
AND REMEDY THAT WASHINGTON TRIED
TO PUT IN PLACE TO RECTIFY THAT
PRESIDENT TRIED TO MAKE THE CASE
THAT NO MATTER WHAT AMERICANS
ARE NOT PAYING FOR TARIFFS, A
LOT OF ECONOMISTS AND OTHERS
DISAGREE SAYING THAT COMPANY ARE
PASSING THOSE PRICES OI WANT TO
PLAY THE ARGUMENT THAT PRESIDENT
MADE TODAY.
>> MANIPULATING THE CURRENCY TO
PAY FOR IT THEY ARE MANIPULATING
THEIR CURRENCY LOWER, VIN
THEIR CURRENCY LOWER, -IN
THEIR CURRENCY LOWER, --N
THEIR CURRENCY LOWER, -- EVEN
LETHAL HURT THEM BADLY, THEY ARE
GIVING MONEY TO COMPANY, HONEYS
AND THOUSANDS OF -- HUNDREDS AND
THOUSANDS OF COMPANIES ARE
MOVING OUT OF CHINA SO THEY
DON'T HAVE TO PAY THE TARIFFS.
MELISSA: DO YOU SEE EVIDENCE OF
CURRENCY MANIPULATION IN
SUBSIDYS?
>> WE'VE SEEN MOVEMENT IN
CURRENCIES, IF I WERE IN A COURT
OF LAW THAT PROVES IT IS
MANIPULATION WOULD REQUIRE QUITE
A BIT, THE PRESIDENT IS RIGHT,
CURRENCY HAS MOVED AND RIGHT
THAT A HECK OF A LOT OF CHINA
BUSINESSES ARE MOVING TO OTHER
COUNTRY, TO U.S. AND OTHER PARTS
OF ASIA, MOSTLY VIETNAM, THERE
IS A LOT OF REASON FOR TWO
PRESIDENTS TO SIT AT G20 AND
DISCUSS TO WHERE WE WERE CLOSE
TO A DEAL.
MELISSA: IS THAT REALLY WHAT THE
PRESIDENT WANTS?
THERE A PUSH TO DECOUPLE THE
U.S. AND CHINA TO GET THE
BUSINESSES WHO ENACT THEIR PLAN
BKS,
B S,
B AND MOVE STUFF TO VIETNAM OR
ELSE WHERE AND MAKE THAT
RELATIONSHIP LESS -- LESS, CO
CODEPENDENT.
>> USE FIRMS SELL AS MUCH IN
CHINA AS CHINA SELLS IN U.S.
SO IF WE COULD MAKE CHINA JOIN
THE COMMUNITY OF NATIONS HAVE
SAME RULES THAT EVERYONE ELSE
DOES, A LOT OF U.S. FIRMS WOULD
LOOK AT MORE PRODUCTION IN U.S.
FOR SALE IN CHINA THAT WOULD BE
GOOD FOREVER U.S. WORKERS, THERE
IS A BIG UPSIDE, WHERE WE ARE
NOW WE HAVE TARIFFS IN PLACE
THAT PUT PRESSURE ON CHINA BUT
NOT A LOT ON U.S. CONSUMERS IN A
NEGATIVE WAY, PRESIDENT IS NOT
IN A RUSH TO GET A DEAL, BUT HE
YOU KNOW SEES YOU THE UPSIDE IF
BEE COULD GET ONE.
MELISSA: DOES HE SEE UPSIDE TO
HAVING LESS OF A RELATIONSHIP
WITH CHINA, HAVE THEY BECOME TOO
POWERFUL IN TERMS OF DEBT THEY
HOLD OVER OTHER COUNTRIES
INCLUDING U.S., AND TERMS OF
TECHNOLOGY, HOLDING A LOT OF
COUNTRY AND U.S. HOSTAGE?
>> YOU KNOW CHINA HAS YOU KNOW
PLAYED BY DIFFERENT RULES THAN
EVERYONE ELSE, THAT IS WHAT
WE'RE TRYING TO STOP.
BUT PRESIDENT TRUMP EMPHASIZED
HE AND PRESIDENT XI HAVE A
RELATIONSHIP, IN THAT
RELATIONSHIP, IF THAT COULD LEAD
US IN THE RIGHT DIRECT THAT
WOULD BE GOOD.
AND GETTING THEM TO STOP DOING
THAT IS A PROGRAM
THAT IS A POTGRAM
THAT IS A POTENAM