Larry Kudlow: 'I don't think the underlying economy is slowing'

  • President Donald Trump's top economic advisor Larry Kudlow says he believes the "underlying" U.S. economy "looks very good."
  • "I don't think the underlying economy is slowing," Kudlow says on CNBC.
  • Kudlow says that he respects the Fed's independence — but notes, "We don't want to threaten this great recovery."
Larry Kudlow, Director of the United States National Economic Council.
Adam Jeffery | CNBC
Larry Kudlow, Director of the United States National Economic Council.

President Donald Trump's top economic advisor Larry Kudlow on Friday said he believes the "underlying" U.S. economy "looks very good."

"I don't think the underlying economy is slowing," Kudlow said on CNBC's "Power Lunch."

"The fundamental economy," a phrase he used to mean "consumption and business investment … looks very good," Kudlow said.

Kudlow, the director of Trump's National Economic Council, made the remarks on CNBC shortly after saying in an Axios interview that he wants the Federal Reserve to "immediately" cut U.S. interest rates by half a percentage point.

"I am echoing the president's view – he not been bashful about that view – he would also like the Fed to cease shrinking its balance sheet. And I concur with that view," Kudlow said when asked by CNBC Friday.

The central bank announced last week that it would hold off on raising interest rates, and hinted that another rate hike might not be necessary for the rest of the year.

Though Fed Chairman Jerome Powell highlighted slowdowns in overseas economic growth, the Fed did not indicate at its March meeting that rate cuts would be necessary.

The critiques from the Trump White House break with the precedent set by past presidents, who have generally allowed the Fed to act independently.

Kudlow said Friday that he respected the Fed's independence — but noted that "we don't want to threaten this great recovery."