FILE PHOTO: White House economic adviser Larry Kudlow listens to a question from the media outside the White House in Washington, U.S., December 3, 2018. REUTERS/Jim Young - RC1AB0598730/File Photo

WASHINGTON (Reuters) - Strong economic growth and modest inflation in the United States are giving Washington leverage over Beijing during trade talks and could give the U.S. central bank room to cut interest rates, a White House adviser said on Friday.

“I hope additional progress will be made, I’m cautiously optimistic about the outcome for a deal,” White House economic adviser Larry Kudlow told CNBC following a report that showed stronger-than-expected inflation-adjusted growth in the first three months of this year. He said the strong growth “does give us some leverage.”