GET BECOME TO THIS MORNING JOB
REPORT JOINING US INDEED LARRY
KUDLOW COUNSEL DIRECTOR LARRY,
STUART WILL HAVE TO BE HERE BUT
I'M NEXT GUY WITH AN ENGLISH
ACCENT TO I'LL TALK WITH YOU.
LET ME GET YOUR REACTION TO
BLOWOUT JOBS NUMBER PRETTY
IMPRESSIVE.
>> I LOVE PEOPLE REQUEST ENGLISH
ACCENT.
[LAUGHTER]
IT WAS A BLOWOUT NUMBER, AND IT
CLICKED ON ALL CYLINDERS YOU
KNOW PERHAPS WITH GET TO THAT.
LET ME JUST SAY AS A MATTER OF
OVERVIEW, BECAUSE OF THE STOCK
MARKET CORRECTION, YOU KNOW,
CORRECTIONS COME AND GO ALL KIND
OF POWERLESS NOBODY REALLY LIKES
THEM BUT IT IS PART OF THE FREE
MARKET STORY.
BECAUSE OF THIS CORRECTION,
THERE'S AN AWFUL LOT OF
PESSIMISM AROUND INCLUDING THE
U.S. AND THE U.S. ECONOMY.
AND THERE'S A LOT OF LOOSE TALK
IN MY VIEW LOOSE TALK WITHOUT
HARDBACKS ABOUT A U.S. RECESSION
AND I SAY NO.
THERE IS NO RECESSION COMING
THERE'S NO RECESSION IN SIGHT.
CONSUMERS ARE STRONG, JOBS ARE
RISE, WAGES ARE RISING, AND LET
ME ADD TO THAT FOR THE BENEFIT
OF MY GREAT AND DEAR FRIENDS AT
FEDERAL RESERVE, MORE PEOPLE
WORKING SUCCESSFULLY AT HIGH PER
WAGES DOES NOT LET ME REITERATE
DOES NOT CAUSE HIGH PER
INFLATION.
AND, IN FACT, THE INFLATION RATE
HAS BEEN COMING DOWN EVEN WHILE
WE'VE BEEN EXPERIENCING A
CONTINUATION OF THE JOBS BOOM.
THIS IS A SUPPLY SIDE EXPANSION
IT IS A BUSINESS SIDE EXPANSION.
THE BUSINESS TAX CUTS LARGE TO
SMALL COMPANIESES, PRODUCING
TREMENDOUS CAPITAL STOCK
INVESTMENT AND PRODUCTIVITY, AND
PRODUCTIVITY AND THEREFORE I
THINK FED NEEDS TO LOOKING THE A
THEIR MODELS RIGHT MAYBE SOME
MORE AIR IN THE TIRES GET RID OF
THE TIRES ALTOGETHER BECAUSE WE
HAVE STRONG GROWTH.
STRONG JOBS, AND NO INFLATION.
THAT IS A TERRIFIC OPTIMAL
SITUATION FOR OUR COUNTRY OR ANY
COUNTRY TO BE IN, AND A I HOPE
CENTRAL BANKS TAKE NOTE OF THIS.
WE'RE GOING TO HEAR FROM JEROME
POWELL IN NEXT HOUR LARRY.
YOU COULD ARGUE INDEED TO YOUR
POINT THAT THE MANDATE OF THE
FED IS BEING FULLY SATISFIED
WELFARE STABLE PRICES NO RAMPANT
INFLATION AND WE HAVE MAXIMUM
EMPLOYMENT WHAT WOULD YOU LIKE
TO HEAR FROM --
>> JUST AS YOU SAID IT.
I'M GOING TO GIVE YOU THE PEN
AND, WHERE IS HE GIVING THE
SPEECH EXACTLY?
ASHELY: IN ATLANTA MUCH.
>> ALL RIGHT.
YOU NEED TO PUT RIGHT WHAT YOU
SAID INTO HIS SPEECH.
THE MANDATE IS FULL EMPLOYMENT.
LONG STABLE, DOMESTIC PRICES.
THAT IS PRECISELY WHAT WE'RE
SEEING.
INFLATION RATES, DEPENDING HOW
YOU MEASURE THEM, RUNNING 1.25
TO 1 1/2%.
PRODUCTIVITY SIN CREASING.
THAT IS PART OF THE SUPPLY SIDE
BUSINESS TAX CUT STORY.
PEOPLE ARE COMING INTO THE LABOR
FORCE.
WE'VE HAD HUGE INCREASES.
LET ME SEE IF I CAN FLESH OUT,
360,000 PEOPLE A MONTH ARE
ENTERING THE LABOR FORCE.
THIS PAST MONTH, DECEMBER,
419,000.
70% OF PRIVATE INDUSTRY IS
SHARING IN THIS BOUNTIFUL WORK
EFFORT.
THIS IS JUST WHAT WE WANT.
JUST WHAT WE WANT.
THEY'RE CARRYING THE FREIGHT
WITH IMPROVED PRODUCTIVITY.
IT DOESN'T GET ANY BETTER THAN
THIS.
I WOULD URGE PEOPLE TO
RECONSIDER THEIR PESSIMISM.
I WILL AVOID THE TEMPTATION TO
SAY AMERICA IS A GREAT COUNTRY,
ALTHOUGH AMERICA IS A GREAT
COUNTRY BUT I WILL NOT AVOID THE
TEMPTATION TO TO SUGGEST
PRO-GROWTH POLICIES, THE
INCENTIVE POLICIES, THE
ENTREPRENEURIAL POLICIES, LOW
TAX RATES, BIG REGULATORY ROLL
BACK, AND I WILL BE JUST A WEE
BY THE POLITICAL HERE, PUT INTO
PLACE BY PRESIDENT TRUMP, ARE
WORKING.
AND THEY HAVE BEEN WORKING AND
THEY CONTINUE TO WORK.
AND IF THERE IS A LITTLE BIT OF
DISCONNECT BETWEEN STOCKS AND
ECONOMY, SO BE IT.
I'VE BEEN AROUND A WHILE.
I HAVE SEEN THIS BEFORE.
PROBABLY YOU HAVE HAVE.
WE'RE ON OPTIMISTIC PATH.
THAT IS MY MESSAGE.
LOOK AT NUMBERS TODAY.
YEAH IT IS A BLOWOUT
STATISTICALLY, BUT THIS IS THE
KIND OF THING THAT IS GOING TO
RAISE THE ANIMAL SPIRITS.
I CAN HEAR PEOPLE.
I CAN HEAR PEOPLE ACROSS THE
COUNTRY GOING, WHEW, YOU KNOW
WHAT, THINGS ARE A LOT BETTER
THAN SOME FOLKS ARE SAYING.
THAT IS MY VIEW.
ASHLEY: UNFORTUNATELY THE FOX IS
IN THE SHOP.
I EMAILED MR. POWELL, LARRY.
NEXT ONE FOR YOU, DELEGATION TO
CHINA NEXT WEEK, PROGRESS BEING
MADE ON A DEAL, CAN WE INFER
THAT?
>> WELL, OF COURSE LET'S SEE HOW
THEY DO.
I KNOW THE PRESIDENT IS
CAUTIOUSLY OPTIMISTIC.
HE HAD ANOTHER TALK WITH
PRESIDENT XI OF CHINA.
THESE ARE ALL GOOD SIGNS.
WE HAVE A DEPUTY DELEGATION
FLYING OVER THIS WEEKEND.
THEY WILL BE THERE ALL NEXT WEEK
AS WE SAID.
THEY WILL LOOK AT COMMODITIES,
AGRICULTURAL, INDUSTRIAL GOODS.
WE WOULD LIKE FRANKLY TO SEE A
REGIME OF ZERO TARIFFS, ZERO
NON-TARIFF BARRIERS AND AN END
TO ALL THE STATE-RUN SUBSIDIES.
THESE ARE CENTRAL PLANNING
POLICIES THAT ARE NOT WORKING.
THE CHINESE ECONOMY IS NOT IN
GOOD SHAPE, CRUCIALLY,
CRUCIALLY, WE HAVE GOT TO SEE A
CHANGE IN CHINESE LAW REGARDING
THE THEFT OF INTELLECTUAL
PROPERTY, REGARDING OWNERSHIP
WHERE AMERICAN COMPANIES MUST BE
PERMITTED TO OWN THEIR
COMPANIES, AND SO THAT WOULD END
THE FORCED TRANSFER OF
TECHNOLOGY.
AND WE ALSO WANT TO SEE A SHIFT
IN THIS WHOLE CYBERSPACE, CYBER
HACKING.
IT IS BECOMING VERY COMMONPLACE.
YOU JUST USE THE INTERNET
CLEVERLY, GO INTO AMERICAN
COMPANIES, PULL OUT THEIR
TECHNOLOGY, THE FAMILY JEWELS.
I'M NOT HERE TO BLAME CHINA.
I'M JUST GOING TO SAY THESE ARE
ISSUES ON THE TABLE, ALL RIGHT?
IN OUR DISCUSSIONS IN BUENOS
AIRES, ARGENTINA DURING THE G20
THEY WERE ON THE TABLE.
WHEN PRESIDENT TRUMP AND
PRESIDENT XI HAD DINNER, I WAS
AT THAT DINNER, THEY'RE ON THE
TABLE.
BASICALLY WE KNOW WHAT SORT OF
CHANGES WE NEED.
NOW THE QUESTION IS, CAN WE
NEGOTIATE THESE CHANGES AND CAN
WE DO SO WITH ENFORCEMENT, WITH
TIMETABLES?
REMEMBER I'M AN OLD REAGAN GUY,
TRUST BY VERIFY.
THESE ARE VERY IMPORTANT AREAS.
SO, YOU KNOW COLOR ME CAUTIOUSLY
OPTIMISTIC.
WE KNOW WHAT WE'RE GOING TO TALK
ABOUT.
WE'RE SENDING, YOU KNOW, SOME
VERY SMART PEOPLE OVER THERE.
BUT LET'S SEE HOW THAT WORKS
OUT.
CHINA NEED REFORM.
CAN I JUST SAY THAT?
AS YOU, YOU WERE REPORTING
CHINESE ECONOMY IS SINKING.
IT'S SINKING.
THEY HAVE LOST ALL MARKET BASED
REFORMS.
MAYBE NOT ALL BUT THEY'RE MOVING
ON THE WRONG TRACK, TOO MUCH
STATISM, TOO MUCH CENTRAL
PLANNING, TOO MUCH CENTRAL
