Economic guru Larry Kudlow predicts that Republicans could very well use the economic benefits from the sweeping Trump tax cuts to defeat Democratic rivals in the November midterm elections.
“There may be other issues, but I would run on the economy. Growth, growth, growth. Tax cuts, tax cuts, tax cuts. Wages, wages. It's going to be a tough race,” Kudlow explained to CNBC about the looming midterm elections.
“Let the tax-rate reduction and let the deregulation work its magic on the economy and the elections,” the Newsmax Finance Insider explained.
“I think the Democrats made a big mistake not having a serious counter on the tax cut bill. I think it's good politics, great economics, and I believe the two are intertwined,” the veteran financial guru and former Ronald Reagan adviser said.
“We're going to see much, much, much smaller deficits. And more growth,” the CNBC senior contributor said.
Kudlow also again touted that President Donald Trump needs to return to “King Dollar,” as stated in a recent Newsmax Finance Insider blog.
“A strong currency is in the nation's best interest. If the dollar keeps falling from here, then I think the Fed has to take some action. They're going to have to absorb more reserves. Close the balance sheet down, let the rates ride up on the short end,” said Kudlow, author of "JFK and the Reagan Revolution: A Secret History of American Prosperity,"written with Brian Domitrovic and published by Portfolio.
Kudlow, who served as the Trump campaign's senior economic adviser, said a weak dollar is “inflationary," and can spark numerous economic and financial woes for a nation.
"It causes financial bubbles. It causes interest rates to go up. No one is ever devalued their currency into a serious prosperity,” said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.
For his part, Trump says the mainstream liberal media twists the facts and distorts reality.
"Do you notice the Fake News Mainstream Media never likes covering the great and record setting economic news, but rather talks about anything negative or that can be turned into the negative. The Russian Collusion Hoax is dead, except as it pertains to the Dems. Public gets it!" the president recently tweeted.
Trump also took to Twitter on Tuesday to tout the economy.
"The U.S. economy is looking very good, in my opinion, even better than anticipated. Companies are pouring back into our country, reversing the long term trend of leaving. The unemployment numbers are looking great, and Regulations & Taxes have been massively Cut! JOBS, JOBS, JOBS," Trump tweeted.
(Newsmax wire services contributed to this report).
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