Larry Kudlow, former Director of the National Economic Council under President Trump and host of Kudlow on Fox Business, joined Chicago’s Morning Answer to sound the alarm on the growing influence of socialism in American cities and to lay out his bullish forecast for the U.S. economy—provided current economic legislation makes it across the finish line.
Speaking with Amy Jacobson and Jim Iuorio, Kudlow weighed in on New York’s recent Democratic primary, which saw far-left candidate Zohran Mamdani emerge as a potential mayoral frontrunner. Kudlow, echoing President Trump’s harsh reaction, described Mamdani as a “100% communist lunatic,” and warned that his policies—such as rent freezes, defunding the police, and state-run grocery stores—would cripple New York’s $2 trillion economy.
“Most of this stuff can’t even be done at the city level,” Kudlow said, noting that Mamdani’s agenda would require approval from the far-left state legislature in Albany. He predicted that current Mayor Eric Adams, expected to run as an independent, would defeat Mamdani in the general election by campaigning against radical economic and public safety policies.
Kudlow also pointed out that Adams has broken ranks with national Democrats by cooperating with ICE and supporting public safety initiatives, making him more aligned with moderate voters and even Trump-era policies. “Adams has opened up the sanctuary city to ICE,” Kudlow said, calling the mayor’s stance a key distinction in the race.
Turning to national economics, Kudlow addressed growing concerns about the federal deficit and spending under President Biden. While noting that tariffs imposed under Trump could generate as much as $2.8 trillion over the next decade, he emphasized that the real solution lies in economic growth.
“Growth is everything,” Kudlow declared. “If the economy grows at 3% or more, instead of the Congressional Budget Office’s projection of 1.8%, that’s worth about $4 trillion in additional revenue. Combine that with tariff revenue and you’re looking at a $7 trillion swing that could dramatically cut deficits.”
Kudlow expressed optimism about a forthcoming tax bill he expects will be signed by July 4, calling it a “big beautiful bill” with the potential to unleash investment, productivity, and wage growth. He argued that strong GDP numbers and easing inflation are indicators that the second half of 2025 could see a robust economic rebound.
Asked about Fed Chair Jerome Powell’s hesitancy to cut interest rates, Kudlow was blunt: “Jerome Powell is a dummy.” He added that Trump is expected to replace Powell if re-elected, and named Kevin Hassett, Kevin Warsh, and Tom Bessent as leading candidates for the job.
Kudlow also addressed ideas like making U.S. Treasuries tax-free for domestic buyers, rejecting the proposal as unnecessary. “Just make them a good product that people want,” he said, pointing to continued strong demand for U.S. debt despite concerns about overspending.
The longtime economic adviser closed with optimism about the upcoming election cycle. He believes Republicans are well positioned to not just hold ground but expand their majorities, setting the stage for further tax and spending reform. “The Republican Congress is going to take several more bites at the apple,” Kudlow predicted.
With his characteristic mix of wit and wonkery, Kudlow’s appearance offered both a warning about America’s flirtation with socialism and a hopeful case for free-market policies to drive the next phase of U.S. growth.