Larry Kudlow's analysis of U.S. economy and GDP numbers
Larry Kudlow disputes recession talk based on recent GDP numbers, highlighting strong core GDP growth and business investment. Attributes strength to confidence in future demand and anticipation of Trump's tax reform package. Points to slowing inflation and predicts a Federal Reserve rate cut. Raises questions about statistical oddities in the GDP calculation.
Key Points
- Strong core GDP growth of around 3 percent
- Business investment increased nearly 10 percent in the first quarter
- Expectations of Trump's tax reform package driving confidence
- Anticipation of a Federal Reserve rate cut
- Statistical oddities in the GDP calculation
Pros
- Strong core GDP growth
- Massive uptick in business investment
- Anticipation of Trump's tax reform package
- Predicted Federal Reserve rate cut
Cons
- Dispute with media and Wall Street over recession talk
- Questionable statistical oddities in GDP calculation