- "Mad Money" host Jim Cramer defends his longtime friend and colleague Larry Kudlow's appointment as President Donald Trump's top economic advisor.
- Cramer says that having Kudlow in the White House will be a boon for the stock market over the short- and long-term.
On a down day for the major averages, CNBC's Jim Cramer highlighted for investors why the market could get a gift from President Donald Trump appointing CNBC host Larry Kudlow as his top economic advisor.
"First, let me distill Larry's philosophy into one word: growth," the "Mad Money" host said on Wednesday. "Growth is true north for this fine but forceful gentleman, and as long as the president takes him seriously about what's true north, that is good for the stock market."
Calling Kudlow "the most pro-growth person I've ever met," Cramer said that his years working with the TV personality on CNBC's "Kudlow & Cramer" taught him how articulate and "at home with the media" Kudlow was.
"That matters tremendously when you have a president who likes to take his cues from cable news, or at least the people on cable whom he agrees with," Cramer said.
When he defended his point on their show, Kudlow would always start by saying, "With all due respect, Jimmy," Cramer recalled. That showed that Kudlow could respect and listen to opposing arguments, which could undoubtedly come in handy at the White House, he argued.
Moreover, while Kudlow has largely championed the president's agenda, he does not necessarily agree with Trump on a few key issues including trade policy.
Kudlow has shifted his position on trade in recent months, from being one of the most pro-free-trade economists Cramer had ever met to aligning himself closer to Trump's view on needing fair trade with China, Cramer said.
The "Mad Money" host said that re-positioning was a big part of Kudlow getting the job but also showed that the new National Economic Council director could compromise: an integral quality in this heated political climate.
"Here's where I come out. Until these tariffs, the general consensus was that Trump's administration was as pro-business as it could get," Cramer said. "That reputation's been frayed now that the president's put up his dukes against China, and it's hurt the stock market."
But with Kudlow in the room, Cramer maintained that the stock market could still get a boost from his longtime colleague's economic outlook.
"The bottom line? I think my great friend and old partner Larry Kudlow will argue forcefully on the inside for whatever is the most pro-growth position imaginable, but in the end, he'll take the president's views and present them, no matter how harsh, in a velvet fist — with all due respect — that gets the point across even to both sides of the aisle, and more importantly in these days of uber-polarization, both sides of the media," he concluded.