Economy

Trump economic advisor Larry Kudlow: US economic growth could hit 5%, at least for a short period

Key Points
  • Asked whether the economy could post 5 percent annual GDP as it recovers from the financial recession, Kudlow said "we could."
  • "We're like several trillion dollars below where we should be based on the long-term trend lines. I want to get back to that full potential," Kudlow told Fox Business Network.
Larry Kudlow (C), Director of the National Economic Council, speaks to reporters outside the White House April 4, 2018 in Washington, DC.
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National Economic Council Director Larry Kudlow said he believes U.S. gross domestic product could hit 5 percent for a time as the economic growth moves back toward its long-term trend.

Asked whether the economy could post 5 percent annual GDP as it recovers from the financial recession, Kudlow said "we could."

"Will we get 5 percent forever? No. But there's a catch up here," Kudlow told Fox Business Network. "Any economist will show you the long-term trend line for GDP versus the actual now: We're like several trillion dollars below where we should be based on the long-term trend lines. I want to get back to that full potential."

The White House confirmed the economist and senior CNBC contributor accepted the post of National Economic Council director last month. The president offered Kudlow the job following Gary Cohn's departure from the post.

Kudlow added that the administration will continue to focus on tax policy and regulation rollbacks as it seeks to foster a healthier economic environment.

"President Trump is saying America is open for business," Kudlow explained. "Animal spirits have already started to jump under this president and his policies and therefore I hope for more of the same."

He also chastised "prior presidents" for their cooler views on business.

"Making fun of investors? ... Let's attack rich people? Those days are over," he said. "I want to devote myself to that message and those actions."