Breitbart News economics editor John Carney said Wednesday on Fox Business Network’s “Kudlow” that former President Donald Trump has a recipe for economic growth.
Carney said, “They should absolutely not be cutting tomorrow, but they locked themselves into a position when they did the 50 basis point cut, it would look like a retreat, an admission that it was wrong if they didn’t cut. And then, and you and I have been talking about this for months, it would look so political. The cut looked political. If they waited till the day after Trump gets elected and then said, no, now we don’t cut anymore, that would be a political outrage. They are going to cut tomorrow, but I think they send the signal that there aren’t more cuts coming or a lot fewer than the market had priced in.”
He added, “The tell on that this was a growth expansion in the stock market is what we had been seeing for a long time, for months, was any time the Fed looked like it was going to get more hawkish, stocks would go down. If it looked like it was going to get less hawkish stocks and go up, people are deciding that the Fed will be more hawkish and stocks soared.”
Carney continued, “If people worry, oh, you know, how are we going to make microchips? Here’s how you do it. You say to the banks, we’re doing bank regulator reform and we are going to lower the capital requirements when you invest in energy, when you invest in chips. We can do this through the private sector by deregulating banks, changing the way the penalties work.”
He concluded, “It lowers government spending but increases the amount the private sector spends on this. It re-privatizes the ecomny. That is the recipe for growth.”
Follow Pam Key on X @pamkeyNEN
