Larry Kudlow: The US Economy Needs Three Cheers for Trump's Economic Plan

February Jobs Report Analysis

• 📉 The February jobs number of 150,000 jobs is only worth barely one cheer, indicating room for improvement.
• ⚠️ While there is no recession, the economy is not performing at its full potential.

Inflation and Federal Reserve Policy

• 🚫 There is no giant inflation, and Fed Chair Jay Powell is unlikely to change the target rate soon.
• 👂 The Federal Reserve is waiting to see the full impact of Trump's policies on the economy before making moves.
• 📈 Tariffs are expected to have a temporary, one-time price effect at worst, according to most economists.

Pro-Growth Measures and Economic Outlook

• 🚀 Pro-growth measures like tax cuts and deregulation could boost economic growth to 3% or better.
• 🏭 Purchasing managers' indexes show some improvement in services and manufacturing, with manufacturing jobs up 10,000.
• 📊 The stock market is experiencing a mild correction, but corporate profits remain strong, making a market calamity unlikely.

Trump's Economic Plan for Three Cheers

• 🌟 A full-throated passage of Trump's economic plan, especially tax cuts, is needed for the economy to achieve three cheers.
• 💡 The plan includes immediate 100% write-offs for business equipment, machinery, and factories.
• 🇺🇸 Goods made in America would receive a corporate tax rate of 15%, which would add significant momentum to the economy.