Falling inflation
Search documents
LARRY KUDLOW: Falling energy prices are the greatest story never told
Fox Business· 2026-01-07 03:31
Group 1 - Stock markets are reaching new record highs, with projections of 50,000 on the Dow and over 7,000 on the S&P 500, indicating a positive sentiment among approximately 135 million American investors [1] - A significant drop of roughly 25% in oil prices is positively impacting the economy, leading to higher take-home pay for the middle class and increased profits for businesses [2] - Tax cuts and deregulation are contributing to higher profits, with 700,000 new private jobs created and a reduction of nearly 300,000 federal government jobs, which is expected to enhance job opportunities and wages [3] Group 2 - The decline in oil and gasoline prices is a major economic story, affecting a wide range of consumer goods and services [4] - Future Consumer Price Index (CPI) reports may show negative prints due to falling energy prices, which could enhance real GDP growth, potentially reaching 5% to 7% [5] - A business boom is underway, with tax refunds expected and new factories being established, which will create jobs, increase wages, and contribute to stock market wealth [6]