Jared Bernstein, the Biden administration’s chief White House economist, advised President Trump to “declare victory” in the trade war and advised the economy to recover from a period of uncertainty.
“My advice to the president is to get out there and declare victory, because that’s what he’s doing,” Bernstein said on “CNN News Central.”
Bernstein urged Trump to say, “I won the trade war. It’s over.”
If he does, Bernstein continues, “The market will recover. A lot of uncertainty will be dissipated, and it will be positive for the economy. Perhaps the odds of some recession will begin to decline.”
But for now, Bernstein said he agreed with economists who believe there is a possibility of a recession.
“I think that basically every economist I spoke to believe is not paid to believe that it is not,” Bernstein said.
Bernstein said these forecasts are “closely linked” to inconsistent messages and uncertainties regarding the administration’s policies regarding trade. He said he spoke to people who said they were planning on building a new warehouse to expand, but he said, “I’m sitting in my hand now.”
Bernstein said he believes the market could recover if Trump declares victory, but warned that “actual long-term damage has been done” in the bond market.
“Safe inventory status for American global investors – this is the safest and least risky place for investment – America’s reputation as a reliable trading partner is corrupted and it will not be fixed,” Bernstein said.
Bernstein said “uncertainty,” “contradictions,” and “fixing is not easy.”
“I’m worried that I’ve had years of damage in less than three months on that point,” Bernstein added.
https://thehill.com/business/economy/5248183-bidens-economic-adviser-trump-trade-war/
