Homepage / Investment / Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming
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Investment

Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming

Larry Kudlow, President Donald Trump‘s top economic advisor, gave an optimistic view of the economy on Wednesday in which growth will run considerably above what has been the norm for the past decade.

Kudlow spoke at CNBC’s Delivering Alpha conference in New York.

As part of the administration’s plan to grow the economy, Kudlow said there would be additional rounds of tax cuts ahead.

“We are getting 3 [percent] and it may be 4 for a quarter or two,” Kudlow told CNBC’s Jim Cramer. “That’s all for the good. Literally millions more people are working.”

Asked whether the administration is considering more tax legislation following the cuts passed late last year, Kudlow said there could be a “2.0 and 3.0 and a 4.0.”

Economists widely expect second-quarter growth to approach 4 percent after GDP rose 2 percent in the first quarter and 2.3 percent in 2017, Trump’s first year in office.

The administration has used a mix of tax cuts, spending increases and regulatory rollbacks in an effort to goose the economy out of what Kudlow characterized as a “growth recession” after the financial crisis.

“You’ve got kids, millennials etc. … who have never seen a full-fledged long-lasting prosperity,” Kudlow said. “It’s not that they’re cynics, they’ve just never seen it. We haven’t had one in 20 years.”

His remarks come as the White House has launched a trade war against both adversaries like China and friends including European Union nations. Long known as a free market proponent, Kudlow has said that while he generally opposes tariffs, something needs to be done

“This guy, President Trump, has the biggest backbone,” he said. “He will not let go of this point, nor should he in my opinion.”

Kudlow claimed that sources have told the administration that “the Chinese government knows they’re wrong.”

“They know they’re wrong, the rest of the world knows they’re wrong” he said. “Something has to be done here.”

This is a breaking news story. Check back here for updates.

Source: Investment Cnbc
Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming

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