Economist Arthur Laffer weighed in on the trade talks between the United States and China, touting what a deal between the two could do for the market.
Laffer agreed with President Donald Trump’s assertion that such a deal could boost the Dow Jones Industrial Average 10,000 points.
“I think he’s right about 10,000 on the Dow,” Laffer told Fox Business Network “Mornings” host Maria Bartiromo on Thursday. “I mean, that’s a pull out of a hat, but frankly, it’s a huge thing for that because it starts having a dynamic consequence with the rest of the world — Japan, South Korea, Europe, everywhere in the world will start doing deals.”
Laffer went on to say that a deal would be like the Kennedy Round of tariff negotiations.
“We need China very much, Maria,” he stated. “And they need us very much. I mean, it’s a perfect match of comparative advantage between the two countries.”
Follow Trent Baker on Twitter @MagnifiTrent
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