Kudlow: Stock Market Cares More About Roaring Economy Than Cohen, Manafort
White House top economic advisor Larry Kudlow says the reason financial markets have not been phased by the recent negative headlines involving former associates of President Donald Trump is due to the robust economy.
The bull market on Wall Street reached a record on Wednesday becoming the longest running in U.S. history, during the same week the S&P 500 hit an all-time high, CNBC reported.
These numbers came despite a federal jury in Northern Virginia reaching a guilty verdict in eight of the 18 counts of bank and tax fraud charges brought against former Trump campaign chairman Paul Manafort.
That same day, Trump’s former personal attorney Michael Cohen pleaded guilty to eight federal criminal counts, including tax evasion, bank fraud, and breaking campaign finance laws regarding payments to two women on behalf of Trump.
Kudlow told CNBC the strong economy is overcoming any negative impact these issues may have otherwise had on the markets.
“The economy’s everything when it comes to markets and confidence, and I think that markets frankly look through all these various political issues,” he said. “There’s no change in policy coming, that’s what really matters. Keep your eye on the ball, and I think the markets have done a good job.”
CNBC noted the the GDP grew at 4.1 percent during the second quarter and the Atlanta Federal Reserve Bank is forecasting 4.3 percent growth in the present one.
Unemployment is currently at 3.9 percent, which is the lowest it has been since 2000.
At a cabinet meeting last Thursday, Kudlow said that America’s current economic boom launched under Trump is the most important and underreported story of the year.
“By far the single biggest event, political or otherwise, this year is an economic boom that most people thought would be impossible to generate. Not a rise, not a blip — a genuine economic boom,” he said.
“Confidence is everything,” Kudlow added. “The new numbers coming in — retail sales, industrial production, low inflation, a rock-steady dollar. Trillions of dollars of capital from all over the world is coming into the United States because our economy, our investors, our workforce are crushing it right now. We are crushing it.”
“And presidential policy — low tax rates, roll back regulations, open up energy, trade reforms to help the American workforce and the employers — across the board, we’re not punishing success; we’re rewarding success,” he said. “We’re not against businesses; we are for businesses. And we have a President who, in my words, was telling folks to take a rip at the ball, and they’re doing it.”
In Kudlow’s assessment, “We’re in the early innings.”
.@larry_kudlow: "The story this year is an economic boom that virtually no one expected… President Trump, who's completely revised our policies on lower taxes and regulations and energy and trade, you've just gotta give him credit." pic.twitter.com/5qL8pSNVWs
— FOX Business (@FoxBusiness) August 17, 2018
Kudlow believes the current growth is not a “one-quarter blip,” citing rising productivity and business investment and low inventories.
“And presidential policy — low tax rates, roll back regulations, open up energy, trade reforms to help the American workforce and the employers — across the board, we’re not punishing success; we’re rewarding success,” he said. “We’re not against businesses; we are for businesses. And we have a President who, in my words, was telling folks to take a rip at the ball, and they’re doing it.”
In Kudlow’s assessment, “We’re in the early innings.”
Trump argued on Wednesday that the campaign law violations Cohen has pleaded guilty to are being treated differently than those in 2008 by former President Barack Obama campaign.
“Michael Cohen plead guilty to two counts of campaign finance violations that are not a crime. President Obama had a big campaign finance violation and it was easily settled!” the president tweeted.
Michael Cohen plead guilty to two counts of campaign finance violations that are not a crime. President Obama had a big campaign finance violation and it was easily settled!
— Donald J. Trump (@realDonaldTrump) August 22, 2018
In an interview with “Fox & Friends” co-host Ainsley Earhardt slated to air on Thursday, the president elaborated that payments to adult film star Stormy Daniels and Playboy model Karen McDougal “didn’t come out of the campaign, they came from me.”
“My first question when I heard about it was, ‘Did they come out of the campaign?’ because that could be a little dicey,” Trump added, but noted that Obama “had a massive campaign violation” but was able to get off with a fine “because he had a different attorney general and they do it a lot differently.”
Politico reported that Obama’s 2008 campaign was fined $375,000 for failing to properly file donations totaling in excess of $1.8 million.
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