LARRY KUDLOW: Trump's message to Congress — unleash prosperity

Published On Mar 4, 2025, 5:58 PM

Larry Kudlow discusses the urgent need for Congress to support President Trump's agenda focusing on tax cuts, deregulation, and economic growth. He believes that Trump's proposed economic policies can boost the economy amidst current challenges like declining business investment and manufacturing. Kudlow argues that the tax cuts from 2017 had positive effects, and emphasizes that Congress should act decisively to make these cuts permanent to avoid significant tax hikes that could harm economic recovery.

Stock Forecasts

XLI

Positive

The expected push for tax cuts and deregulation by Trump could set a more favorable environment for businesses, potentially leading to higher growth in sectors sensitive to these policies, such as energy and small businesses. The market sentiment may favor companies that could benefit from deregulation and improved tax conditions.

XLY

Negative

As Kudlow indicated that the current economic indicators are weak, sectors linked directly to consumer discretionary spending may face challenges unless significant improvements in the economic framework are witnessed. Investors should be cautious about relying on retail stocks in the near term, as they might underperform if economic conditions don't improve soon.

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