Larry Kudlow: Wall Street and Main Street are doing the Trump dance

Wall Street and Main Street are both doing the Trump dance and that’s what the hype is about. Take a look at some of the massive trust numbers – hot off the press today. Small business confidence had its largest single-month increase in the monthly survey’s 39-year history, rising after the election.

Middle-class workers, who expect their financial situation to be better a year from now, jumped to the highest reading since February 2020 — just before the pandemic struck — according to a survey by the Federal Reserve Bank of New York.

Moreover, even large a job He started doing the Trump dance. The Business Roundtable published its quarterly survey today based on responses from CEOs of 156 companies — most of them the nation’s largest — and their confidence index jumped to the highest level in two and a half years.

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Six-month forecasts for sales, capital spending and employment improved. guess what? People seem to be looking to reduce taxes and regulations. Consumers are certainly hoping for $2 a gallon of gasoline. You can bet that small businesses are anticipating a permanent extension of the 20% 199A deduction for pass-through businesses, which make up a significant portion of total U.S. business and employment.

You can also bet that middle American workers will be very happy with tax-free cash tips and tax-free overtime to fatten their wallets.

Seniors also want a break from the double tax they now pay on their lifetime earnings. It’s all in President Donald Trump’s campaign platform, and people are watching every word to see what progress he makes in keeping his promises. And let’s not forget Trump’s stock market rally, which may have something to do with his corporate tax cut to 15% – which would be very healthy for real profits and wages.

Then there is the Scott Besant Association market This is a gathering, as hopes rise that the DOGE brothers, Elon Musk and Vivek Ramaswamy, will do their part to shrink the size and scope of government – ​​cutting spending, and ending not just regulation, but the regulators themselves.

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The combination of economic growth of 3% or better, a significant reduction in the budget deficit to 3% of GDP (from 7% currently), plus an additional 3 million barrels per day of oil production would reduce energy prices throughout the economy. This is Mr. Besant’s 3-3-3 formula. It has become very popular on Wall Street.

Mr. Trump’s pledge to cut taxes and regulations has become wildly popular on both Wall Street and Main Street. Now, the trick is to get it all done as quickly as possible. Promises have been made, and promises have been kept, Mr. President. This is the riff.

This article is an excerpt from Larry Kudlow’s editorial commentary on the December 10, 2024 edition of “The Kudlow.”