Breitbart News economics editor John Carney said Wednesday on Fox Business Network's “Kudlow” that former President Donald Trump has the secret to economic growth.
“They should never cut rates tomorrow, but they locked themselves into a position when they cut rates by 50 basis points,'' Carney said. It would seem like he was admitting that he had done so.” And you and I have been talking about this for months, and it would seem very political. This cut seemed political. It would be a political outrage if they waited until the day after Trump was elected and said, “No, we're not going to make any more cuts now.” They're going to cut rates tomorrow, but I think they're sending a signal that there won't be any more rate cuts, or much less than the market was pricing in. ”
He added: “The fact that this is an expansion of stock market growth means that we've seen for a long time, for months, that whenever the Fed looks like it's going to get more hawkish, stocks fall. That's what I've done,” he added. . If the number of hawkish stocks decreases and stock prices appear to rise, people will assume the Fed is going to be more hawkish, and stocks will soar. ”
Carney continued, “If people are worried about, oh, how do we make microchips, here's how. We say we want to lower capital requirements for investing in energy and chips. We can do this through the private sector by loosening bank regulation and changing the penalty structure.”
He concluded as follows: “Government spending will go down, but the private sector will spend more. It privatizes the economy again. That's the secret to growth.”
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