StashLearn
Get the app
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Money News

Trump Chooses Larry Kudlow as Economic Adviser

March 14, 2018

  • Trump nominated CNBC commentator Larry Kudlow to lead the National Economic Council
  • Kudlow advised Trump during the presidential campaign
  • Kudlow is a supply-side economist who has differed with the President on tariffs

 

1 min read

President Trump has tapped television and radio personality Larry Kudlow to lead the National Economic Council, as his top economic adviser.

The nomination comes days after Gary Cohn, the NEC’s former head, stepped down citing differences with the president over a new trade policy that includes imposing heavy tariffs on foreign aluminum and steel.

Kudlow, a commentator for CNBC known for his conservative politics, informally advised Trump on economic matters during his presidential campaign, and also consulted with Treasury Secretary Steve Mnuchin, as he helped Congress draft the recent overhaul of the U.S. tax system.

Originally a Democrat, Kudlow switched parties and later served President Ronald Reagan as an economic adviser in the 1980s, according to reports. He is a supply-side economist, meaning he believes that lowering taxes on corporations and the wealthy will increase investment in business and the economy.

What’s the NEC?

The NEC helps to coordinate policy-making for domestic and international economic issues. It also helps to coordinate economic policy, advice, and goals for the president, and assists in  implementing the president’s economic policy agenda, according to its mission statement.

Kudlow, a commentator for CNBC known for his conservative politics, informally advised Trump on economic matters during his presidential campaign

One objective of the NEC is to ensure the president hears competing points of view on economic policy.

Disagreement over tariffs

Kudlow has agreed with Trump on tax cuts and deregulation, but has differed with the president over tariffs.

“Steel and aluminum may win in the short term, but steel and aluminum users and consumers will lose,” Kudlow wrote recently in an opinion piece on CNBC, adding that “tariff hikes are really tax hikes” that may jeopardize 5 million manufacturing jobs in the U.S.

Trump had also considered Christopher Liddell, a former executive at both General Motors and Microsoft, as well as Peter Navarro, another economic adviser to the president who pushed for the tariffs, according to reports.

By Jeremy Quittner
Jeremy Quittner is the senior writer for Stash.

Next for you
Who is Gary Cohn and Why Does His Departure Matter?

Investment Profile

Bonds Worldwide

An International Bond ETF on Stash

Learn more
Explore more articlesChoose a topic to learn more about
pop culture Retirement love and money politics social media
Disclaimers

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.