While March 14, 2018 ended up being a down day for most major indices, CNBC’s Jim Cramer pointed out that the market could experience a rally, courtesy of President Trump. The president has decided to appoint Cramer’s fellow CNBC commentator Larry Kudlow as his new economic advisor. Kudlow will be replacing Gary Cohn, who recently resigned from the position.
“First, let me distill Larry’s philosophy into one word: growth. Growth is true north for this fine but forceful gentleman, and as long as the president takes him seriously about what’s true north, that is good for the stock market.” Cramer said Wednesday.
Kudlow has mostly agreed with the president’s policies, however, his opinion diverges with Trump’s when it comes to trade policies. Until recently, he was a pro-free-trade economist. The soon-to-be advisor has since changed his views to align with Trump’s on fair trade with China. Kudlow also supports the president’s views on lower taxes, less financial regulation, and immigration.
Gary Cohn resigned last week after opposing Trump’s steel and aluminum tariffs. Kudlow is also known to oppose these tariffs, but the president seemed to welcome his disagreement, stating “I want to have different opinions. We agree on most. He now has come around to believing in tariffs as a negotiating point.”
Cramer added, “Here’s where I come out. Until these tariffs, the general consensus was that Trump’s administration was as pro-business as it could get. That reputation’s been frayed now that the president’s put up his dukes against China, and it’s hurt the stock market.”
Kudlow certainly has a lot of experience under his belt. He served as a budget aide during Reagan’s presidency, and worked as chief economist at Bear Stearns from 1987-1994.
Ultimately, Cramer believes that his colleague will be able to deliver the president’s views in a way that both sides of the media can understand, which is an important attribute in the current political climate. “I’m looking forward to serving the president. The way I was brought up in the Reagan years, you talk it out and you argue it out, but once the president has made a decision, that’s it. My job is to execute.”
Article By: Frank Marino-Moore