There's no question that the economy is experiencing a big effect due to President Donald Trump's policies, and that all the naysayers have been proven wrong, economic analyst Larry Kudlow told host John Catsimatidis on "The Cats Roundtable" Sunday radio show on AM 970 in New York.
Kudlow, who advised Trump on the tax reform legislation passed in December, said he is expecting three to four percent growth annually. He explained the economy has already grown at more than three percent for three straight quarters for the first time since 2005, which followed the George W. Bush tax cuts.
Kudlow also said, "The biggest beneficiaries [from the tax cut] are going to come to wage earners – ordinary working-class folks around the country. The companies themselves jumped in almost immediately and directly referred to the Trump tax cuts and said they want to provide higher wages right away to help a workforce that hasn't seen wage increases since about the year 2000."
Kudlow did caution, however, that there could be a "minor three to five percent correction in the stock market" due mainly to a similar percentage rise in interest rates and said that people should not be shocked if it happens or see it as a bad sign for the overall economy or an indicator that inflation will be problematic.
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