WASHINGTON (Reuters) - The U.S. economy should enjoy strong growth in the second quarter and for the remainder of the year, with weakness in other global economies likely to have a limited impact, a top White House adviser said on Wednesday.
The U.S. Treasury yield curve recently inverted, prompting fears of a recession. A rise in short-term rates above long-term rates has been a harbinger of recession in the past.
But the U.S. Federal Reserve has sought to play down the risk of an economic slowdown.
“This year we’re looking at a weak first quarter. We still expect a strong second quarter and rest of the year, but the momentum from Europe and the momentum from Asia is much different than it was last year,” White House Council of Economic Advisers Chairman Kevin Hassett told CNBC.
Hassett said the United States was less susceptible to economic headwinds from other parts of the world because its economy was less export-dependant than many others, such as Germany, which he said had been “looking very close to, if not in, recession.”
Reporting by Makini Brice; Writing by Tim Ahmann; Editing by Bernadette Baum