The third issue is China, he said.
"China's not the whole world, but China is important, and it
looks like the China story is worse than anybody thought. We
don't know where the bottom is," Kudlow said.
Rather than a rate hike, the economy really needs a corporate
tax cut and a regulatory rollback on things like Obamacare and
Dodd-Frank, he said.
Kudlow said the other factor affecting the economy is the low
price of oil. It's great for consumers, but has a deflationary
effect in some sectors.
He said he doesn't know what the correct price of a barrel of
oil should be, but added, "I can tell you it ain't gonna be
$100. And it's not gonna be $80."
With fracking becoming more economical, the price likely won't
top $60 per barrel, and won't see $100 again "in our lifetime,"
Kudlow said.