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In a broadcast discussion, Fox Business host Larry Kudlow stated that it is time to finish off Iran once and for all, framing current U.S. military efforts alongside economic resilience despite hotter-than-expected inflation data.
Kudlow noted that April was a challenging month for inflation, with both the CPI and PPI coming in above expectations. He pointed out significant hand-wringing from legacy media and the Democratic Party, but emphasized that financial markets reacted minimally. The S&P 500 and Nasdaq hit new record highs, the Dow Jones remained basically flat, bond rates stayed within their year-long range, and world oil prices actually fell slightly.
According to Kudlow, there is no catastrophe. He expressed confidence that the Federal Reserve and its new Chairman Kevin Warsh would monitor prices closely but doubted any particular actions would be taken. He suggested the best course might be to do nothing, possibly shrink the balance sheet, and develop new economic models demonstrating that low unemployment does not cause high inflation and strong economic growth does not either.
Kudlow directly linked the temporary inflation bulge to U.S. and Israeli actions, saying President Donald Trump and Prime Minister Netanyahu are working hard to finish off Iran once and for all. He described Iran as the world’s enemy, comparable to the Nazis of almost 100 years ago, for developing nuclear bombs capable of destroying the U.S., Israel, and the rest of the civilized world. “A couple of months of inflation is a very small price to pay,” he said.
He highlighted that President Trump has provided middle-class America with tax cuts offsetting much of the impact from $4.50 gasoline prices, calling it a push. Kudlow described the American economy as strong and resilient, with first-quarter growth at 2% plus and potential for as much as 4% in the second quarter, alongside low unemployment at 4.3%.
Kudlow warned that backing off Trump’s commitment to destroy the Iranian regime and its nuclear capabilities would risk losing everything, including the economy. He anticipated that Trump would convey this resolve to Chinese President Xi Jinping during their meeting in Beijing the following day, stressing that Iran must not have any nuclear capabilities.
Addressing China’s role, Kudlow said Xi helped make Iran the monster it is today by arming it extensively, purchasing 90% of its oil to finance those arms, providing weaponry including through a space satellite system, and supplying money in Chinese yuan. He noted Xi’s current unhappiness due to the closure of the Strait of Hormuz and disrupted oil flows, but said not to expect much help from China, as Iran was their creation.
Kudlow stated the United States will take care of Iran. He identified the bigger news as Trump meeting with top military and national security advisors to plan the re-opening of Project Freedom to reopen the Strait of Hormuz and complete combat bombing missions. He mentioned Treasury Secretary Scott Bessent’s department apparently turning the lights off at Kharg Island, with bombing there potentially next, actions that would destroy what remains of Iran’s economy.
Kudlow concluded by noting the irony of Trump planning the finishing touches to end the scourge of Iran while meeting in Beijing.