The economy is coming back, everyone can see.

0:00 Speaker 1 With us today is Larry Cudlow, one of the country’s leading economists, and in addition, the number one show on Fox Business between four and five every day and the number one show on w ABC every Saturday between ten and one Saturday mornings. Larry Cudlow. CPI came out this week.

0:20 PPI came out this week. But the truth is, the average businessman doesn’t know if they should zig or zag. Give us your opinion. You were there, you were at the wet House. You know, Washington. What’s going on?

0:40 Speaker 2 Well, look see the inflature numbers are coming down, there’s no question about that. The top line numbers looked very good. I mean this this this CPI was three point two percent year on year. That’s a very good number. The course ADPI slipped a little four point seven percent year on year. The that’s got more work to do. It’s

1:08 just going to be sticky from here on the end to get to two percent. That’s the point that I would make. Of course, EPI has weight, and that’s going to be a problem. And as you know better than anybody else, oil prices have been rising. Gas lit prices now three dollars and eighty four cents. That will add

1:29 to the top line CPI next month by by two or three or four tenths of one percent, depending on the producer price. Indext was good business prices have come down only zero point eight percent, so that’s a good number.

1:48 Hopefully it’ll stay there. But you know, you still have an issue. I mean, if you go back the last two and a half years, basically price the level of prices have gone up by sixteen percent, plus energy price is about thirty percent, grocery prices about twenty percent. So ordinary middle class families, working folks are still faced with

2:18 very difficult increase in prices and they’re struggling with that relative to their wages. So things are looking a little better, the economy is still in a sluggish mode. The last six quarters a year and a half, you’ve only grown by one point three percent at an annual rate. That’s not good. A healthy economy would grow at three or

2:39 four percent. So it’s a mixed bag. You know, the good news is inflation is coming down. That’s the best news. But look, you still have you know, the war against fossil fuels goes on. These prices jumping now again, that could be problematic. Food prices are still very high. So I’ll say better on the price front. We need growth, John,

3:04 we need growth. We’re not getting growth.

3:06 Speaker 1 We need well.

3:07 Speaker 2 Stop raising regulations, stop raising taxes. We need to spend try money.

3:12 Speaker 1 What I’ve said, what I’ve said that we had a discussion on a Friday, and what I said to people was that the businessman has to have confidence that Washington is knowing what they do. And right now, the average business band doesn’t have the confidence. They’re also concerned about their own banks, and the banks are concerned about their

3:34 own existence. So this leads to turmoil, you know. And I said, if I want to buy one hundred new trucks and the interest rates are seven eight percent, I mean, I’m not sure I’m gonna buy those hundred new trucks right now, and I’m gonna wait till next year.

3:52 Speaker 2 Well, and I think that’s exactly right. There’s a lot of uncertainty a back. Look, this administration has not help business, that’s no secret. Just like they have not helped the oil producers and the gas producers. I mean, I don’t know one thing. You know, you talk about this stuff.

4:11 Why don’t they just declare natural gas a clean burning fuel and stop the war against natural gas. That would be something that would be extremely helpful. They’ve done that in Europe, by the way. And the other part of the natural gas is the LNG part of the story.

4:28 We should be exporting LNG all across the world, which would reduce carbon emissions in China and India. And by the way, the United States has the lowest carbon reduct the greatest carbon reduction of any of the major countries.

4:44 We’re making progress. I don’t understand this war against possil fuels. I never will. I think it’s ultraliberal people there in Washington, d C. In the White House. But so just to come back, I mean, at least we’re getting at least we’re getting summarly. You know. I found thing though, John, I mean, grocery prices for families up three tenths in

5:05 the month of July. So that’s okay, but it’s still three point six percent year on year, that’s not okay. And of course wage rates are rising about five and a half percent.

5:18 Speaker 1 And this whole thing with electric cars. I heard you on your show the other day, Yeah, you were, you know, we talked about it over dinner that Ford has stopped making electric cars completely electric maybe, uh. And they lost four and a half billion last quarter on electric cars, and they’re thinking of doing the satisfying the whole thing

5:41 with the evs. They’re doing hyper hybrids or something.

5:46 Speaker 2 What have you heard, consumers life hybrids. You’re right, Ford lost four billion plus on the evs. They’re going to be switching gradually to producing more hybrids. By the way, mister Toyota of Toyota argued this month ago, a lot of people criticize him for it, but he’s right. People like hybridgs and you can’t force you know, you have

6:12 to have consumer choice, don’t you, John to let people buy the car on how alternatives?

6:18 Speaker 1 And Toyota has said the chairman is the CEO of Toyota has said, look, let him buy hybrids, let him buy diesel, let him buy gas. So let him buy evs. We’re gonna give him a choice by.

6:29 Speaker 2 Every Yeah, no, I don’t agree with that. I’m for consumer choice and consumer freedom. So all is not right with the world. We know that that doesn’t mean it will always be so, but right now, all is not right with the world. I’m a free market capitalist. I want to see more free market capitalism. Don’t give me

6:54 Central planners, John, give me consumer choice.

6:58 Speaker 1 Well, Larry Kudlow, I agree with you one hundred percent. Thank you for calling in, and we’ll talk again real soon.

7:05 Speaker 2 Yes, sir, take care. Thanks a lot,