CEO predicts Trump policies will ‘turbocharge’ economy more than Reagan
Ark Invest CEO Cathie Wood sees a bright future ahead with President-elect Trump’s return to the White House and predicted over the weekend that his policy agenda will likely usher in economic growth not seen in decades.
In a post-election message to investors released Sunday, Wood likened America’s current economic situation to the early 1980s when President Reagan’s tax cuts combined with interest rate cuts by the Federal Reserve resulted in explosive growth that led to the US eventually growing its way out of the deficit and ended with a surplus in the Clinton era.
She added on X following her video message that Trump’s policies “are likely to turbocharge the US more powerfully than during the Reagan Revolution.”
In making her case, Wood touted Trump’s vows to cut taxes and slash regulations again as he did during his first term, and also pointed to his vow to partner with Tesla CEO Elon Musk to cut government spending in his second term.
“Now the deficit will go down, we think, because of growth, but also we think the inefficiencies in the government are extreme, and we do believe that Elon Musk… will figure out ways — through attrition, in terms of head count and technology productivity gains — to really shrink the government as a percent of GDP, getting a lot of the waste out of the government,” Wood said.
Wood revealed in June that she would be voting for Trump for president over Vice President Kamala Harris, because she believes the former president would be best for the economy.
“Look, I am going to vote for the person who’s going to do the best job for our economy,” Wood said in an interview with “Meet Kevin” financial analyst and YouTuber Kevin Paffrath. “I am a voter when it comes to economics, and on that basis, Trump.”
She further explained that Laffer Associates founder and chairman Art Laffer “describes the first three years of the Trump presidency as the best in U.S. economic history, not the last one because of COVID, and I would agree.”
FOX Business’ Greg Wehner contributed to this report.