Economy & Business

Kudlow Blames Market Downturn on Nervousness about Midterms

White House economic adviser Larry Kudlow speaks to reporters at the White House, October 5, 2018. (Kevin Lamarque/Reuters)

White House economic adviser Larry Kudlow believes that the recent stock-market downturn is due to the business community’s nervousness about the outcome of next week’s midterm elections.

“Inside this correction someplace is some nerves about the election,” Kudlow said at a Washington Post event Thursday. “Small business and all business and frankly the workforce is enjoying a very strong economic boom, which is quite unexpected.”

The NASDAQ dropped 9.2 percent last month, making October the worst month for the market since November 2008, when it sank 10.8 percent.

Kudlow said he is confident that the current correction is not the start of a “long-term downturn” and blamed it in part on Democrats.

A Democratic majority in the House after Tuesday’s midterm congressional elections could usher in more regulations, red tape, a reversal of President Trump’s energy policies, and higher taxes, all of which worry businesses, Kudlow argued.

“I doubt it very much. The economy’s so healthy right now, and profits are soaring,” he responded when asked whether Trump’s trade wars with China and other foreign economies are responsible for the wobbly market. “Corrections come and go.”

“My crystal ball is not at all clear,” Kudlow said when asked if Trump would work out his differences on trade with Chinese president Xi Jingping. “The agenda is being discussed and worked on inside both camps.”

Kudlow said he believes the largest tech stocks in the market got “pretty toppy” and were “due for a correction.”

“Our small businesses are soaring. Soaring. They’re killing it,” Kudlow said, adding that small businesses should expect 3 percent growth next year as well.

Most Popular

Politics & Policy

Kat Timpf Chased Out of Brooklyn Bar

Fox News personality and National Review contributor Kat Timpf was forced to leave a bar in Brooklyn over the weekend after a woman she had never met became enraged upon learning she worked in conservative media. Timpf, who has twice previously been harassed while socializing in New York City, first described ... Read More
Film & TV

The Dan Crenshaw Moment

Given the spirit of our times, things could have gone so differently. On November 3, when Saturday Night Live comic Pete Davidson mocked Texas Republican Dan Crenshaw’s eye patch, saying he looked like a “hit man in a porno movie” — then adding, “I know he lost his eye in war or whatever” — it was a ... Read More

The Present American Revolution

The revolution of 1776 sought to turn a colony of Great Britain into a new independent republic based on constitutionally protected freedom. It succeeded with the creation of the United States. The failed revolution of 1861, by a slave-owning South declaring its independence from the Union, sought to bifurcate ... Read More

Florida’s Shame, and Ours

Conspiracy theories are bad for civic life. So are conspiracies. I wonder if there is one mentally normal adult walking these fruited plains -- even the most craven, abject, brain-dead partisan Democrat -- who believes that what has been going on in Broward County, Fla., is anything other than a brazen ... Read More

Fire Brenda Snipes

Brenda Snipes, the supervisor of elections in Florida’s Broward County, does not deserve to be within a thousand miles of any election office anywhere in these United States. She should be fired at the earliest possible opportunity. Snipes has held her position since 2003, in which year her predecessor, ... Read More