President Trump is “Guiding Hottest Economy in World”
The US National Economic Council Director Larry Kudlow said America’s economy is leading the rest of the world by returning to a basic approach of cutting taxes and burdensome regulation to allow businesses to freely flourish with government oppression.
“The U.S. is the hottest economy in the world today. We’re crushing it,” Mr. Kudlow told the Economic Club of New York. “Capital is flowing here in huge quantities.”
“The single biggest story of this year, 2018, the single biggest news story is not a fictionalized version of what goes on in the White House and all the rest of it. The single biggest story is an economic boom that virtually everybody thought impossible,” said Mr. Kudlow.
“I believe the recent successes are not off-off. They will be continued and sustained because of the policies,” he said, citing a long list of recent robust economic statistics such as rising consumer and business confidence reports, a solid labor market and increasing wages.
Mr. Kudlow urged investors to avoid uninformed judgments against the President and his trade strategy.
“People are blaming the President,” said Mr. Kudlow.
“I say, do not blame Trump for this. He inherited this trading mess. He’s trying to fix it. He is a reformer. It is not an easy task,” he said.
“I wish our friends around the world would emulate and imitate our policies of lower taxes and deregulation so they can pick their growth rates up as well,” he said. “Cut taxes and the economy will grow. It’s a model that’s been used [that] worked in the ’60s, ’80s, ’90s [but] didn’t work the last 20 years because we moved in the wrong direction. Now we’re moving back in the right direction. Now we’re moving back in the right direction, the incentive model.”
The economy is expanding at a 4.4% annualized rate in Q-3, the Atlanta Federal Reserve’s GDPNow forecast model showed Friday despite retail sales recording their smallest gainer in 6 months in August.
The economy grew at a 4.2% annualized rate in the April-June frame, the fastest in nearly 4 years and almost 2X the 2.2% pace set in Q-1.
The Fed’s Beige Book report said labor markets were “characterized as tight throughout the country,” and, despite trade tensions, “businesses generally remained optimistic about the near-term outlook.”