Fox Business - We are in VERY good shape economically, says former Reagan economist

Short Summary

Main recommendation: The guests argue the U.S. economy is in very strong shape and that the Fed should not try to prop up foreign currencies such as the Japanese yen. Art Laffer predicts oil will fall to about $55 to $60 a barrel once the Strait of Hormuz reopens, and he expects inflation to come down under incoming Fed chair Kevin Warsh. Steve Moore credits tax policy and reciprocal trade for a manufacturing and construction boom.

Key Points

• Laffer cites seven straight months of positive ISM manufacturing readings and a Dow Jones record high as evidence of strength.
• Moore attributes the manufacturing and construction boom to onshoring incentives, especially immediate expensing in the tax code, which encourages companies to invest in the U.S.
• Moore says data center construction is booming across the country.
• Both guests claim the U.S. economy is the best in the world, ahead of China, Japan, Europe, and the U.K., which they describe as flat.
• On the money supply, Laffer says he is not worried about M2 growing near 9% annually, arguing the Fed should focus on its own monetary base rather than supporting weak currencies.

Details Worth Noting

• Concrete instructions: The video gives no step-by-step instructions for viewers. The only actionable-type advice is directed at policymakers: Laffer says the U.S. should not support weak currencies such as the yen and that Kevin Warsh should focus on domestic monetary policy rather than acting like the Bank of Japan.
• The guests frame the Strait of Hormuz reopening as the key condition for oil prices to drop, with Laffer saying "you can count on" $60 oil and $55 as his best guess.
• Larry Kudlow notes the Dow reaching a record of 53,178, comparing it to the figure of about 1,000 that held for years before Reagan-era policies.
• The host jokingly compares the repeated Iran negotiations to couples therapy ('the eighth or ninth deal'), and Laffer jokes that 'one works,' with Larry clarifying not necessarily all will succeed.
• These are the guests' own opinions and forecasts, not independently verified data.

Bottom Line

The segment presents an optimistic economic outlook driven by tax incentives, trade policy, and expected lower oil prices, but its key claims rest on the guests' forecasts and framing rather than presented data.