Larry Kudlow, the veteran financial guru and former economist in the Reagan administration, said President Donald Trump’s pro-business agenda is in doubt as the White House sinks deeper into turmoil.
The Dow Jones Industrial Average plunged more than 370 points on Wednesday, a day after the New York Times reported that Trump asked former FBI director James Comey to stop looking into ties between Russia and national security adviser Michael Flynn. The revelation spurred greater speculation that Trump faces possible impeachment.
“I don't think any of this helps the tax cut,” Kudlow said on CNBC, referring to a cornerstone pledge of the Trump campaign. “I don't know that it kills it. I get that. They're very far along,” he said of lawmakers drafting proposals for tax reform. “There is no actual legislative print from either the House or the Senate on the tax and that tells you something.”
As the Trump administration gets bogged down in repeated allegations about illegal activity, such as obstruction of justice, fear grows that his presidency policy agenda will fail or that he may be removed from office.
Kudlow downplayed the possibility of a Trump impeachment.
“People who are telling me the Republican House will impeach a Republican president I think are nuts. Absolutely nuts,” Kudlow said.
Kudlow questioned the timing of a leak of memo written by Comey that detailed the discussion with Trump about the Flynn investigation. Kudlow said Comey was required by law to complain that Trump was obstructing justice after the incident.
“This happened months ago. Comey suddenly comes forward. So I'm just not clear about this. Mr. Comey will testify next week,” Kudlow said.
Last week, Kudlow said a congressional delay on healthcare reform was a bigger drag on Trump’s economic agenda than any fallout from the May 9 firing of FBI Director James Comey.
“Everybody was pushing back healthcare a month or two … the Senate was going to consider healthcare more than people initially thought,” Kudlow said on CNBC on May 10. “Frankly I think that's more significant than the Comey firing.”
Kudlow is host of "The Larry Kudlow Show" and author of "JFK and the Reagan Revolution: A Secret History of American Prosperity," written with Brian Domitrovic and published by Portfolio.
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