Larry Kudlow: There is no growth strategy right now in the political system
FOX Business host Larry Kudlow says the Federal Reserve has ‘misread’ the economy from ‘Kudlow.’
The more the The Fed bungles inflationthis is when we need Trump’s tax cuts the most, and that’s the subject of the riff.
Do you know what’s wrong with the stock market? The Federal Reserve has no fiscal compass and there is still confusion about whether Trump’s tax cuts will be delayed.
There is no growth strategy currently in the political system and there is no King Dollar the end of Bidenflation in terms of money system, so the shares fall day by day.
The Dow fell more than 1,100 points today – its 10th consecutive daily decline, the biggest decline since 1974. As I said, nothing good happened in America in 1974.
In the final days of the 118th Congress, Democrats are still calling for massive spending cuts and wasteful spending — and Republicans still haven’t figured out their plan to roll back taxes and limits for next year when they take office.
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Sen. Tommy Tuberville, R-Ala., calls out overspending in government and says tax reform is needed for ‘Kudlow.’
The Fed has also misread the economy as inflation in recent months has gone up, not down, and consumer spending has been stronger than expected. Much of the motivation comes from Biden’s $2 trillion annual deficit and the Fed continues to make money. Threads of confusion.
I Trump The stock market’s honeymoon is, at least temporarily, broken. There have been many rumors that President Trump is looking for a one-size-fits-all reconciliation package that includes tax cuts and border security, but it is still in the rumor stage and no deal has yet been revealed with White House and Senate leadership. The Fed has now decided to cut rates only twice next year instead of four, and is now predicting higher inflation.
The market and the Fed have become helpless led by the ignorant. It’s a sad situation. They included the jumbo rate cut in September and included the point cut in today’s December cut. They settled on the November price.
They broke the forecast. They got together by managing their own balance sheet, and, by the way, forced a 20% price increase in middle America over the last four years with no hope of prices ever going down because of their flawed and misguided models.
They should get rid of their excess money by cutting the balance sheet by a few billion dollars, but they don’t, and of course, the Biden-Schumer politics continue to spend like crazy. Now, President Trump can fix all of this. He will eliminate the tax cut credit – the question is when.
The DOGE brothers – AKA Elon Musk and Vivek Ramaswamy – will dismantle the regime and cut government spending. Again, it’s just a question of when.
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Closing the border and deporting illegals to eliminate crime – that comes with it … it’s just a question of when, but now we have to consider how next year’s economy can make a blue-collar boom in 2025.
I’m not worried about 2026 I’m not worried about 2027 I’m worried about 2025 which starts in a few weeks. The problem is solvable: Cut taxes immediately, along with spending and deregulation, combine that with the border closure package into a big fat reconciliation bill – and do it in the next 100 or 120 days.
That will fatten middle-class wallets, revive business investment and deliver the blue-chip prosperity Mr. Trump has promised his labor coalition. That’s the wrap.
This article is adapted from Larry Kudlow’s opening remarks on Dec. 18, 2024, edition of “Kudlow.”
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