Plus, new fox news polls show senator Elizabeth Warren surging. President trump is taking notic notice. Iidocahtas thing and it looked like she was down and out. But that was too long ago, i should have waited, but dont worry. Dana well a our sunday panel whether bidens frontrunner status is in jeopardy. All right now on fox news sunday. And hello again and fox news in washington. There are signs of calm after a turbulent week. President trump announced till delay tariffs on chinese goods in order to save holiday sales. Thats a seamy commission the u. S. China trade work could hurt u. S. Consumers. If the dow plunged 800 points wednesday but recovered from losses. Right now the president is in bedminster, new jersey. In a moment we will speak alive with white house Economic Advisor larry kudlow about reports the white house is trying to reassure key players the economy is on firm footing. But first, kevin corke is live with is now with the latest. Kevin. Dana, thanks to an inverted yield curve, fears of the dreaded r word, recession, are sweeping from wall street to main street but the white house is doubling down on its economic policies, completely convied the u. S. Economy is not just the best in the world, its the best bet for American Voters in 2020. If the week that was almost ray earned a letter grade it would get a v volatility. With the dow imitating roller coaster. Slide and 1. 5 . A reaction, say experts, safe, to a number of factors including the u. S. China trade dispute. Ongoing unrest in hong kong and the inverted yield curve with longer notes like the 10year offering less than shorter treasuries like the twoyear period even as a 30year yield fell to an alltime record low. And while theyre all to are signs of optimism, for example, retail sales have jumped 3. 4 from a year ago, Consumer Confidence has fallen. 6. 4 from july. I will never, ever let you down, that i can tell you. Undaunted, President Trump took his message of economic evangelism on the road to New Hampshire this week, a key 2020 target for the g. O. P. Where unemployment is low and democratic promises of an economic overhaul have been met with skepticism. You have no choice but to vote for me because your 401 k s, down the tubes, everything is going to be down the tubes. So whether you love me or hate me, youve got to vote for me. On friday, the chairman of the federal reserve, Jerome Powell will make comments on the economy. He is a frequent target of the president s ire. Give us a chance to measure the impact on the markets and obviously gauge white house reaction as well. Dana. Dana kevin corke reporting live, thank you so much. And joining me now, white house Economic Advisor larry kudlow. Welcome to fox news sunday, larry. Larry thank you, dana, appreciate it. Dana a mixed bag of economic numbers. If talking about it, the dow dropped, then it bounced back, retail sales are up. Job growth continues, manufacturing is slowing down. Is the administration considering any loop to new legislative policies or executive action to stave off what some are saying could be a possible coming recession . Larry well, first of all i dont see a recession at all. Second of all, the trump growth program, which i believe has been succeeding lower tax rates, bid rollback of regulations, energy opening, trade reform. We are going to stay with that. If we believe thats the heart of the free enterprise, we want an incentiveoriented supplyside to comment to economy providing opportunities for everybody across the board and as your report mentioned, blowout retail sales. Consumers, first of all, they are working. The employment numbers are terrific. The second of all, they are working at much higher wages. Third of all, their spending. And fourth of all, interestingly, they are saving, even while their spending. Thats about as good as it gets and i notice at the end of the week a lot of the wall street firms have been marking up their Economic Growth forecasts. I think we are in pretty good shape and i want to just say, you know, we should not be afraid of optimism. I dont know what it is everybody wants to talk about pessimism, recession dana is that what the president larry whats wrong with a little optimism . Dana you know me, im an optimist. I wonder why the president called some of the banks on wednesday when it went down. Your message from the white house now there is no recession coming and were just calling to assure you that we think the economy is on firm footing and no additional measures are needed . Larry i dont think additional measures are needed. Now hang on. I want to talk about the ongoing china negotiations. We will get to that in a moment, perhaps. We are looking at the usmca, nafta 2. 0 trade deal, that would be very important and would add a half a point of gdp and 180,000 new jobs per year if we get that through. Again on the trade front, a good deal with the European Union and finally, making great progress on japan with respect to agriculture and various telecommunications, so those are new initiatives. Trade initiatives and we may be doing much better on china is a tough one that will get to that. Dana we will get to china. Larry thats the addon. The atoms are these potentially progrowth trade deals with china with japan and the e. U. Dana when you talk about brief endotracheal, you know i love talking about this kind of deals. I do wonder about an idea President Trump made. This is what he said in 2018. Watch. We are going to be putting in a 10 tax cut for middleincome families. Its going to be put in next year. Dana is that still on the table . Larry we are looking at it. Tax cuts 2. 0. We are looking at all that. By the way, senator rick scott of florida, very smart guy, made in interesting proposal on another network last week. He said, look, why dont we take the tariffs from the china trade in turn those back to the taxpayers in the form of tax cuts . Thats an idea. Dana thats an idea, but right now isnt all that money going to shore up our farmers . Larry well, we got room to do that as well. Lets have people keep more of what they earn. Lets let them keep more of what they invest. Thats the supplies to supplyside curve. We believe in that. I cant say definitively this morning. Im saying is theres a lot of good ideas to create more incentives to work and invest. Look, President Trump is transforming and rebuilding this economy. Weve done very well in our first two years, just short of 3 , which is kind of a miracle, because we say severe monetary restraint from the fed. Seven rate hikes. I think they are reversing that now but that was tough going. But no, i wanted open Economic Freedom and opportunity economy for entrepreneurs. Small businesses, large businesses. Look at the consumer. Consumers are working. The wages are rising. They are spending and their saving. A lot of wall street firms looked at the numbers last week and they raised their forecast. So no, there is no recession in sight. Dana you said you want to talk about the trade war with china, i do too. Giving some investors, i would say, heartburn. If china is also taking a hit. The slowest gdp in 27 years since 1982, is what white house trade advisor Peter Navarro said this week about that. The end game is clear, to have china stop engaging in these acts of economic aggression that cost us over 70,000 factories. Dana but chinas threshold for pain seems to be pretty high and even President Trump acknowledged this week that tariffs could impact consumers and delay that announcement of additional trade, tariffs. How do you think this and think can you assure that any deal with china makes it possible for companies to believe that their intellectual and proprietary property will be taken by them . Larry thats a key point right there. Thats a very, very key point. We are in kind of a technological war with china and we cannot let them steal our family jewels, which is the heart of the american Economic Growth miracle. Were the only economy growing in the rest of the world. On china, the tariffs have hurt them enormously. And as i think you mentioned, you got a bunch of numbers, stats coming out of china last week, all of them down. I think the production number was the worst in 17 years. Business investment is fallen, retail sales. China is in some economic trouble. President trump is using tariffs in order to put more pressure on the chinese economy. I think his strategy is in fact working. What we did, we gave some relief to big American Consumer companies for christmas because they had already locked in their orders in dollar terms and prices. So were going to give them some relief and exclude them, but on december 15th, the 10 tariff is likely and the rest of 300 billion to take place. One other point on china. Look, kudlow acxiom, better to talk then not talk. Thats usually the case. So, so, so, we had successful teleConference Call, secretary mnuchin and a bash at her point number one. Point number two, in that Conference Call they agreed with the chinese team that their deputies will be meeting by teleconference in the next week or ten days. If those deputies meetings and out, as we hope they will, and we can have a substantive renewal of negotiations, then we are planning to have china come to the usa and meet with our principles to continue the negotiations and continue to talk. President trump has said hes willing to negotiate. Hes willing to make a deal. Its got to be the right deal to protect american interests. Ive set a million times. The president s goal here is very simple. He wants to defend the american economy, and china, which has been stealing intellectual property and forcing Technology Transfers and cyber hacking, china has got to play by the rules. China has got to have lower barriers across the board. No more unlawful practices. This can be done over a period of time if they are willing to do it, we are willing to talk. As i said, the phone calls last week actually produced a lot more positive news than has been reported in the media. And im hopeful dana a lot of those calls are in private. A lot of those calls are in private. Take your word that they go better of course, we are not there listening, but there are a series of ongoing issues on parallel tracks during this trade were. So the administrations report of the going to grant another temporary reprieve for huawei and the president has walked a very careful line, the unit safe is poised to self taiwan 8 billion in fighter jets so that will surely rankle china either further and where we might be able to separate those issues out, do the chinese . Larry yes, the chinese are very smart, they know quite well. Look, we have to defend american interests. Not only our economic interests, but our security interests. Thats very, very important. With respect to to hong kong. You had another weekend, hundreds of thousands of people protesting for freedom, for voting rights, against arbitrary extradition. We are on the side of freedom and democracy, thats President Trumps view. Thats what america does. Thats part of our idea. We want to help hong kong. At the president has said he would like talk to president xi about a peaceful and humane solution to the hong kong story. Might hong kong interfere with the trade deal . Well, i dont really want to get there at this point. All ill say is we dont want violence in the United States, we want to humane ending. And if that can happen, of course that might bolster the trade deal. So ill leave that they are. The chinese know full well that trade, security, hong kong, these things are all part of the general landscape, and by the by, we are protecting our consumer companies. They got stuck. They made their deals with chinas suppliers months ago. Their supply chains, their prices. So weve decided to give our companies this is just for the United States our companies, some extra time, so they wont have to jack up prices. The goal here is very simple, we want to minimize any impact on the American Consumers. So far its been virtually zero. I jt saw a forecast, professor Neil Ferguson of harvard. Dana one of my favorites. Larry china is paying for these tariffs by a ratio of about 4 1. Thats what we expect to happen. Dana i have one last question, if you get asked to go do a survey about purchasing greenland, can i go with you . Larry [laughs] maybe i will run the central bank. Its an interesting story. Its developing, were looking at it. We dont know. Theres a go harry truman to buy greenland. Denmark owns greenland. Denmark is an ally. Greenland is a strategic place up there and theyve got a lot of valuable minerals. I dont want to predict it now. Im just saying the president , who knows a thing or two about buying real estate, wants to take a look. Dana and all im saying is youve asked to go and do a site survey, id love to accompany him on the trip and do an interview out there. Larry kudlow, thank you for joining us. Happy sunday. Larry i could make that happen. Thank you, dana. Appreciate it. Dana up next will bring in our center group to discuss how shaky market in the trade were in fact the republican plans to run on the economy. 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Everything exactly how i want it. Heres the thing. Just because i configured this car online doesnt mean it really exists at a dealership. But with truecar, i get real pricing on actual cars in my area. I see what others paid for them and they show me the ones that match the car i want. So i know i can go to a truecar certified dealer and itll be right there waiting for me. Today. Right now. This is truecar. We are doing this for the Christmas Season just in case some of the tariffs would have an impact on u. S. Customers. The tariff separately bitten into china, they havent bitten into us at all. Dana President Trump this week on his handling of the u. S. China trade war. Time now for some degree. Jason chaffetz, former republican congressman. Juan williams, fox news political analyst. Anne gearan of the washington post. And senator Mitch Mcconnells former chief of staff, josh holmes. You heard larry kudlow just now, he doesnt think theres a recession coming. That the general view of people inside the white house . Well, theres a division of opinion within the white house on the economic signs that really have been coming for a couple of months, but crystallized over the last couple of weeks. The inverted yield curve, which we all now know, a term i think dana four more times of someone expanding it to me. I kept thinking of credit default swap. Executive. We all learned what that was back then and were learning what this is. Basically its just an indicator in the bond markets, which are often an early sign. Dana other countries are not going as well. Of china not doing as well and the point is that our economy is okay. What are they considering doing anything . I brought up that middleclass tax cut. Is on the table . You invited him to stay with the additional steps might be and he responded with a series of existing proposals for trade deals and trade initiatives. And said they are considering a tax cut, but clearly if they wanted to do that they could have moved on it already. Thats still under consideration. Hes right. Our sources tell us the white house is looking at other ways they can juice the economy a little bit after the stimulus, but the trumpet is running out of options to do that. Hes really already used most of the things that are within his immediate executive dana jason, what are the republicans want the president to do in the economy . They wanted him to talk about it a lot leading into 2018. Econy is good in america, on the plumbing is are rising, especially for the lower level, so what would republicans want him to do now, if anything . I think the republicans in the heartland are actually going after nancy pelosi and the democrats for not passing out the usmca. The deal with mexico and canada is moving. It is squarely in Nancy Pelosis camp and i do think republicans need to turn up the heat on her and say, look, this deal is here, its ready to go, farmers want to business interests wanted and its really hurt him, not donald trump scan. Hes in everything he can to reduce regulation, cut taxes. Dana can i do anything more does the president need to put a shoulder behind his deal even more . Yet. They need to ratchet it up. Ive been watching joni ernst and kim reynolds in iowa, theyve been doing on the ground, grassley is going around i would doing that. Dana will know what has to happen from the white house. President ial candidates also need to be asked the question is somehow the media doesnt even ask that question. Dana larry kudlow really wanted to talk about china, juan, and the democrats position has been be tough on china. Can they draw a contrast between what the president is doing and what they would dutifully or should even try or just get behind him . I