LARRY KUDLOW: Ironically, Trump in Beijing is planning the final blows to end the scourge of Iran.
FOX Business host Larry Kudlow discusses the Iran war and President Donald Trump’s trip to China to meet with Chinese President Xi Jinping on ‘Kudlow.’
April was a bad month for inflation. There is no doubt about it. Both the consumer price index and the producer price index were hotter than expected. There is a lot of hand-wringing between the legacy issues and the Democratic Party. But the financial markets, much smarter than the leftist machine and the Democrats, didn’t react to it at all. The S&P 500 and Nasdaq hit new record highs. The Dow Jones was basically flat. Bond prices are in their range for the rest of the year. World oil prices have actually fallen slightly.
There is no tragedy. I’m sure the Federal Reserve and its new chairman, Kevin Warsh, will be keeping a close eye on rates. However, I doubt whether they will take any action. The best they can do right now is nothing. Reduce the balance if possible. Start working on new economic models that show that low unemployment does not cause inflation. And strong economic growth is not.
Inflation is hot right now because President Trump and Prime Minister Benjamin Netanyahu are working hard to destroy Iran once and for all. A temporary increase in fuel and other prices is a small price to pay to destroy a world enemy country. Like the Nazis almost 100 years ago. Developing nuclear bombs that will destroy America, Israel, and the rest of the civilized world – if those lunatics get the chance to do it. However, they should never have the opportunity to do it.
NEC director Kevin Hassett discusses the Strategic Petroleum Reserve, the federal gas tax, and the Trump administration’s economic agenda as solutions to combat rising gas prices in ‘Kudlow.’
That’s why a few months of inflation is a small price to pay. Mr. Trump has given middle-class America all kinds of tax cuts that reduce most of the $4.50 gas. Call it a push. The American economy is strong and resilient. It grew by 2 percent in the first quarter. And it may grow by 4 percent in the second quarter. Unemployment is low at 4.3 percent. Americans work. That is an amazing thing. But if we ever withdraw the commitment of Mr. If Trump destroys the Iranian regime and its nuclear power, we could lose everything, including our entire economy. And this should never happen. I am sure that Mr. Trump will tell President Xi this when they meet tomorrow.
America will not give up. Iran must not have nuclear power. Look, Mr. Xi helped make Iran the monster it is today by arming them to the teeth, and, with the purchase of 90 percent of Iran’s oil, they financed those weapons. Mr. Xi gave them weapons through the space satellite system. Mr. Xi gave them money written in Chinese yuan. Now he is not happy because the Strait of Hormuz is closed and the oil has disappeared. But don’t expect Mr. Xi can give us a lot of help with Iran. Like I said, it was their creation from the beginning.
America will take care of Iran. I think the big news today is less hot than expected inflation. That Mr. Trump is meeting with his top military and national security advisers to plan the reopening of a project that would reopen the Strait and end the anti-bomber campaign.
Scott Bessent’s Finance Ministry, on the other hand, has turned off the lights on Kharg Island. Bombing may be next. Any of these could destroy what is left of Iran’s economy. It is surprising that Mr. Trump is planning a summit that will end Iran’s woes, even if he meets in Beijing with Iran’s main sponsor. Think about that.
