MARY REICHARD, HOST: Coming next on The World and Everything in It, the Monday Moneybeat.
KUDLOW: We are in very good shape. I just want to make that point, and you can see by the action in the stock market. People are looking through the temporary shutdown. They’re just looking through it.
NICK EICHER, HOST: Economic adviser Larry Kudlow at the White House. He admits he’s guessing, but he says he’s got 3 percent penciled in for economic growth in December. If he’s right about that, it would mean an annual Gross Domestic Product number of about 3.2% for the year. That kind of growth has not happened in 13 years.
As we mentioned last week, these are guesses. The partial government shutdown has furloughed economists at the Commerce Department. They’re the ones who crunch the numbers and calculate GDP.
Kudlow said last week the government shutdown is no reason to question the underlying strength of the economy. He pointed reporters to a Federal Reserve industrial production report for December. It showed the biggest surge in manufacturing in 10 months.
Kudlow says it squares with blue-collar wages that are growing at a faster rate than white collar wages.
KUDLOW: This is what we’d hoped would happen with our incentives for growth, and it’s working. So, listen, this stuff going on now is temporary and we’ve been through this before. Um, our economy’s very strong.
EICHER: The White House is also sending positive signals about its talks with China to resolve the trade war and roll back planned tariffs.
REICHARD: That news drove another winning week on Wall Street.
All the major stock indexes finished significantly up.
The Standard & Poor’s 500 surged 2.9 percent. The Dow Jones Industrials climbed 3 percent. The Nasdaq picked up 2.7 percent, and the Russell 2000 added 2.4.
EICHER: And that’s today’s Monday Moneybeat.