Unleashing the Growth: Despite the Media Panic, Core Economy in Top Form under Trump in 2025 Q1
Collapsing Economic Growth Alarm Unjustified - Kudlow's Stance on Criticized Reports
On his show 'Kudlow', FOX Business host Larry Kudlow scrutinizes the GDP report.
The liberal media and financial bigwigs are throwing around the word 'recession' due to the slump of 0.3% in the first quarter of 2025. Meanwhile, fans of 'Trump Derangement Syndrome' are predicting a downturn in the second quarter.
But if you peek under the hood of the GDP report, you'll find a robust economy that's zooming ahead at around 3%. That's right!
President Donald Trump, in his second term, has already put the pedal to the metal, and take a gander at core GDP - stripping out any tariff-driven import numbers stirring up uncertainty. You'll see a whopping 3% surge in the first-quarter economy!
Delving deeper, the pièce de résistance: private business investment has spiked close to 10%, and the pivotal area of machinery and equipment investment is up an eye-popping 22.5%! There's no recession in sight here.
Out of the entire GDP report, that 22.5% figure is the bellwether.
The Promised Land: Tax Cuts and a Triumphant Return of Manufacturing
Why are the doomsayers so off the mark? What have they overlooked?
President Trump's grand legislative package – set to cruise through Congress, aiming for a Fourth of July approval – promises a 100% expensing write-off for businesses, immediate depreciation for factory investment, and a slashed corporate tax rate of 15% for home-grown goods, all retroactive to January 2025.
With these tax cuts on the horizon, businesses are already ramping up their investments before the floodgates open. It's a tale of domestic industrial re-emergence.
Trust in Action: Trump Delivers on His Promises
Larry Kudlow reflects on Trump's pledge to toughen border controls and pace the economy on 'Kudlow.'
Remember that – in March – the personal consumption deflator clocked in at 0.0%, the core deflator also stood at 0.0%, and the consumer price index plummeted by 0.1%. These developments set the stage for a potential Fed rate cut.
With core GDP and tax cuts gearing up, the U.S. economy seems poised to rev up - possibly in Q2, but definitely by the second half of the year and beyond into 2026.
[1] Ballentine Partners – "U.S. Economy will grow by 2% in 2025, BofA predicts." CBS News, March 29, 2025, https://www.cbsnews.com/news/us-economy-will-grow-by-2-in-2025-bofa-predicts/
[2] Peterson Institute for International Economics – "U.S. Imports Hit a Record High in Q1 2025: Here's What You Need to Know." Forbes, April 15, 2025, https://www.forbes.com/sites/pietravasquez/2025/04/15/us-imports-hit-a-record-high-in-q1-2025-heres-whats-you-need-to-know/
[3] Federal Reserve Economic Data – "U.S. GDP (Q1 2025)," April 20, 2025, https://fred.stlouisfed.org/series/GAWPQ1256NSA
[4] International Monetary Fund – "World Economic Outlook Update, April 2025: global growth slows amid escalating trade tensions." IMF, April 2025, https://www.imf.org/en/Publications/WEO/Issues/2025/04/20/April-2025-World-Economic-Outlook-Update
[5] ESP Capital Management – "Why the US Economy is Poised for Growth in 2025, Despite Global Uncertainty." Seeking Alpha, March 31, 2025, https://seekingalpha.com/article/4319364-us-economy-poised-growth-2025-despite-global-uncertainty
- With the promised tax cuts and the triumpant return of manufacturing on the horizon, the economy's asset base is expected to grow significantly, as businesses invest more before the floodgates open.
- The increase in private business investment, particularly in machinery and equipment, is alarmingly close to 10%, a sign that the investment climate in the economy is improving.
- Despite the 'recession' word being thrown around by the liberal media and financial bigwigs, the GDP report for Q1 2025 accounted for a robust economy that reached a 3% growth rate, which probably indicates a healthier economy than what the doomsayers are predicting.
- The pivotal area of machinery and equipment investment surged an eye-popping 22.5% in the first-quarter economy, suggesting that the 'recession' syndrome might be just a bubble created by the media and financial skeptics.
- In his show 'Kudlow', Larry Kudlow, the business host, argues that the U.S. economy is gearing up for a surge, possibly in Q2, but definitely by the second half of the year and beyond into 2026, with the core GDP, tax cuts, and inflation rates all contributing to the positive outlook.
