Friday, June 29, 2018

Now Kudlow Has Turned Into An Inflationist

This is a bad return to work for President Trump's National Economic Council Director Larry Kudlow after suffering a heart attack.

Before his heart attack, Kudlow had been defending Trump's mercantilist anti-trade positions. Of course, Kudlow knows better and understands tariffs suffocate an economy.

But his protection of Trump is now even more extreme.

He is now signaling the Fed to go slow on interest hikes.

Kudlow told Trump apparatchik, Maria Bartiromo, that more people working and the faster economic growth does not cause price inflation---which is true when the Federal Reserve is not manipulating the economy. But when the Fed is creating a business cycle environment the boom phase is followed by the bust phase--and before the bust price inflation does generally accelerate as it is now starting to do.

Kudlow is now publicly denying this.

He told Bartiromo, " I speak to [Federal Reserve Chairman] Jay Powell periodically and they understand that [growth does not mean price inflation] and will move slowly [on interest rate hikes.]

There you have it. Kudlow is jawboning the Fed to allow price inflation to "run hot." He is now officially an inflationist.

He also lied to Bartiromo about deficits, saying they were coming down.

It appears Kudlow has been totally corrupted by being close to power.




1 comment:

  1. Cue Aretha Franklin:
    RE- RE- RE- RE-
    RE- RE- RE- RE-
    (Just a little bit)