Larry Kudlow - Iran only has 1 friend

0:00The inflation expectations are flat to down. We've had some very good discussions here over the past few days and everyone agreed. The growth has been better than they thought it would have been given the Iran conflict. Now everyone is always cautious going forward, but growth has been better. Larry Cutlow, Fox Business Talked with Treasure Secretary Scott Besen earlier today at the G20 meeting in North Carolina. Larry joins us now from Asheville. Larry, thanks for being here. I guess the first question is, you know, what's the biggest thing you took away from your fireside chat with the Treasure Secretary? Well, I think the biggest thing, Brett, was we are in an economic boom and we are in a manufacturing boom and a construction boom. And by the way, the ISM manufacturing today, eighth straight month of increases, which we haven't seen in many, many years.

1:02Just how strong this economy is a little over a year, year and a half after the one big, beautiful bill and the Trump tax cuts. This is a free enterprise economy. There's money coming in, trillions of dollars are coming in to the United States, the onshoreing. This is a very strong economy. We don't need any big government socialism. That's was the biggest takeaway. We also had a strong talk about Iran. We may want to get into that in a moment. But on the economy side, it was just how strong the American economy is. And by the way, it's pulling away from other economies in Europe and Asia. Okay. Let's talk about Iran. Here's a piece of that, the Treasure Secretary, on Iran. We are probably going to announce a bank sanction this week. And we are announced one the week after we are tracking down the IRGC's assets. And I will say it on Worldwide TV just so you know, we know the aware in the British Virgin Islands, your accounts are.

2:05At these trust companies, we know the $100 million houses you have around the world. And we are going to freeze those. This is aggressive and this economic push by all accounts is having an effect. We are getting reports that Iranian leadership, some of them are leaving Iran. Yet on the issue of Iran, Larry, you look at crude prices right now. They jumped up after the recent attacks. Gas prices roughly the same at 410, a gallon. But the average consumer is feeling it, you know. And I heard what you said in the first answer. But Iran is a factor here. Yes, it is. I don't disagree. I don't deny it. Look, the Secretary today was very, very strong about keeping cash from Iran. Closing down these offshore banking avenues, he closed one down in the UAE. He's looking at others. That's his job, not the military side, but the money side. And he was very, very vocal about that.

3:06I would say he was at his most intense in the entire interview in discussing this. Look, Iran can cause trouble. Still, I get that. I don't think this is a long shelf life, but I'm not the military expert. All I know is from the Treasury standpoint. And in our discussion today at the G20, the Secretary was very, very strong. And by the way, in terms of the G20 group itself, Iran has no, perhaps they had one friend, China. But that's all. But this group was united behind closing down Iran. You know, Larry, to that point, the Treasury Secretary said, hey, listen, to cut countries out there, you're either with us or you're not. And we are the economic engine. Here is something about that to your point about what about China. Either you are with us or against us. And everyone says to me, well, what about China? I said, we have more in common with the Chinese on Iran than we disagree with on. The Chinese agree. Iran cannot have a nuclear weapon.

4:08The Chinese agree that there should be free, the freedom of navigation in the straight of promotes. So we have had private discussions with them. And this comes, obviously, three weeks ahead of President Xi coming here to Washington, DC. Well, I had no reason to doubt it. I mean, again, I don't think Chinese wants a nuclear on Iran. China has not been, look, you know, they've not been vocal in this. They've cut back on their oil demand. And so I don't think that they're not financing the war the way they were a year ago or two years ago. So you know, but again, the Secretary of Besson is absolutely insistent on closing down Iranian cash wherever it pops up offshore. You know, these IRGC people, they've tried to take assets. They're stealing. They're looting from the Iranian people. They're taking money. They're trying to move it offshore. Now these banking avenues, these small exchange houses, these trading firms, this is the stuff

5:12that Scott Besson is trying to close down. And I think he's done a very good job of it. So the question is, how long does shelf life does this IRGC really have? I'm going to say I don't think it's going to be very long. Yeah, they're following the money. Larry Cudlow and the mountains of North Carolina, Larry, thank you. Thank you, Brett. Appreciate it. Sure to like and subscribe for all the Fox News latest on YouTube and catch full shows streaming now on Fox 1.