Larry Kudlow: Fed Chair Jay Powell, once corrects once

The Federal Reserve Chair I was among all the toughest critics in the last four years – in the last four years – when the Fed spilled in money supply and essentially to increase $ 5 trillion Federal expenses and deficiencies and debt.

The Fed was initially rejected that there was an inflation problem. Then, they claimed to be the transition. When they walk around to put the foot around, 9% of the cat was up to the melody of the cat bag.

During the Biden period, prices increased by more than 20%, the salary increased less. So, the rebellion of the working levels of all colors and strips. A rebellious rebellion President Donald Trump.

He said all this Jay Powell at today’s press conference He spoke very sensitive and has a story about the story and inflation.

As I mentioned, this may be the fact that sometimes it may be necessary to look at inflation, if the transition will look at inflation, if they move away quickly. This can be in the tariff inflation.

– Federal Reserve Chair Jerome Powell

This is the most excess subject today in Wall Street Trump’s tariffs will be inflation. They are not.

Powell is right: Any Price growth will switch.

Think in this way. If the price of a washing machine rises due to the tariff and a family turns out and in any case it takes a higher price anyway, it’s less money to spend on other items.

The cost of the washing machine will rise, but some other price or prices will fall. This can mean that the family will not receive a television set or a computer or anything else.

Thus, a price is growing, families are less than expending to another good and lower the other price. However, the total consumer price index of 80,000 products does not change.

That’s what makes this temporary.

If an individual price can lead to higher total inflation, the fed printing press burns or if the federal government spent binge goes. If it were, then the inflation is a fundamental money problem because of the total inflation tariffs or not.

By the way, if the fed printing houses will err, the dollar returned. And this will raise the entire inflation index.

Now, even if it does not target the fed dollar or exchange rates, it should be noted that the price of gold is $ 3.050 today. This warning to Fed – to drain money powders.

And it seems that Jay Powell will really keep money powder dry. As he says today, “There is no need to be in a hurry to adjust our policy posture.”

This is the Fed-Talk: Central Bank does not cut interest rates or increases the money supply.

In addition, the Fed said it would continue to reduce the capture of treasury securities and mortgage support bonds, although they will soon slow down the landing pace. But this is a good thing, because it will keep the money supply, ie the inflation rate must remain in the verification.

All this shows that the wall street and liberal media are a large number of hoo-ha on inflation tariffs.

So I will welcome Jay Powell – because he was right. Once once.