FOX Business host Larry Kudlow says the Federal Reserve has 'misread' the economy on 'Kudlow.'
More and more The Fed's careless inflationthe more we need the Trump tax cuts, and that's the subject of the riff.
You know what upsets the stock market? The Federal Reserve has no monetary compass, and there is still confusion over whether Trump's tax cuts will be delayed.
There is no growth strategy now in the political system and there is no end to the Dollar King to Bidenflation in finance system, so it's no wonder the stock is falling day after day.
The Dow plunged more than 1,100 points today — its 10th straight daily decline, which is 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 pushing for a massive spending boondoggle and slush fund — and Republicans still haven't figured out their tax and border adjustment strategies for next year when they take office.
TRUMP'S TREASURY PICKS REVEAL WHETHER FED CHAIR POWELL WILL END
Sen. Tommy Tuberville, R-Ala., calls out overspending in government and says tax reform is needed on 'Kudlow.'
The Fed has once again misread the economy as inflation in recent months has risen, not fallen, and consumer spending has been stronger than they thought. Most of the stimulus comes from Biden's $2 trillion a year deficit financing and the Fed continues to monetize. Confusion abounds.
The Trump The stock market's honeymoon, at least temporarily, has been ruined. There are many rumors that President Trump wants a sweet peace package that includes tax cuts and border security, but it is still in the rumor stage and no agreement has been reached with the leadership of the White House and the Senate. The Fed has now decided on only two rate cuts next year instead of four, and now they are predicting higher inflation.
Markets and the Fed have become helpless led by the ignorant. It is a sad state of affairs. They confused a jumbo rate cut in September, and they confused a quarter point rate cut in a December cut today. They are baffled by the November rate cut.
They confound predictions. They carelessly managed their own balance sheets, and, in doing so, they forced a 20% price increase on middle America over the past four years with never any hope that prices would go lower because of their flawed and misguided model.
They should get rid of their excess money by cutting the balance sheet by several trillion dollars, but they didn't do that, and, of course, Biden-Schumer politics continue to spend like crazy. Now, President Trump can fix all of this. He will move the tax cut bill - the question is when.
The DOGE brothers — aka Elon Musk and Vivek Ramaswamy — will dismantle the regulatory state and cut government spending. Again, it's just a matter of when.
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Closing the borders and deporting illegal immigrants to end crime — that will happen too... it's just a question of when, but now we need to consider how to turn next year's economy into 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 one big reconciliation bill — and get it done in the next 100 or 120 days.
That would fatten middle-class wallets, rejuvenate business investment and deliver the blue-collar boom Mr. Trump promised his working-class coalition. That's the riff.
This article is adapted from Larry Kudlow's opening commentary in the December 18, 2024, edition of "Kudlow."
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