Larry Kudlow: Federal Reserve GroupNink is a bureaucratic disease

Breitbart’s John Carney went to war against federal reserve tariffs as he put him. Unlike the Middle East, this is a phonalization war.

Fed stubbornly refuses to lower the target rate, because Mr. Trump’s tariffs decided to increase inflation. So I ask, what is your model of tariff inflation? Because so far, in recent months, inflation rates have fallen by 10% to the initial tariff. Since January, the CPI reduced only 1.4% per year under the 2% target of the Fed. Thus, the tariff inflation is missing in the movement. Again, Jay Powell does not refer to this.

Powell itself is not an economist. Mainly a bureaucracy managed by several hundred economists in the board. But we still do not know what their models are. He is guilty of all fed-fed groups at the moment. And President Trump, the Fed Council was connected with the mistakes of Jay Powell’s mistakes made this problem with a finger. The group thinking is a bureaucratic disease. All this nourished ads did not vote. So where are Trump appointers? Where is Miki Bowman, a new vice vice seat for control? Where is Chris Waller, the former Notre Dame Economy Prof. Where are the diversity of thought, and why don’t these board members ask the inflation of Powell’s new Tariff’s inflation?

The Fed policy is completely non-transparent and transparent. You have no idea how they come to their results.

So here’s an idea: Mr. Trump has put a number of tariffs during the first term. During Chinese trade talks, 25% tariffs in China.

In addition, he was 25% tariff in steel and aluminum, 30% of the solar panels and the inflation rate in these years was mainly 2% or less. You cannot create an economic model based on simply when one changes.

For example, Trump tax discounts in the first term, the side of the supply, creating more goods about productivity and helped to reduce inflation when the economy grew. In fact, five-year fertility for non-financial companies increases by increasing the increase in growth without inflation by 2.6%.

The Republican Congress is preparing to pass the tax cutting bill It will permanently spend money permanently for machines, equipment and factories. Deepening of this type of long-lasting capital, according to the last academic study, which is broadcast by Nber, will give you more growth without inflation. Now I ask that the Fed included it into economic models? We do not know. They say. To reduce trade barriers and adjust the market entry and reduce the market access to American companies, reduce the market access to market entrance and more inflation, other counter-inflation movement.

But Jay Powell never talks about any of these taxes and regulatory reforms. Instead, during the press conference, “It is likely to increase in tariffs for tariffs” and for economic activity, “Anyone I know,” it predicts a meaningful increase from tariffs for someone. ” Huh? I know a group of people who will pay for exporters. I know other people who think our companies will pay. In fact, I recognize a group that recognizes that the tariffs can be inflation, because if the money supply increases from only 4% to 4%, they will pay less for another item by releasing the price index.

So I’m going back to Jay Powell and I think of the whole Fed group. Someone should say that he is not responsible for money policy, not a trade policy. There is no idea of ​​future trading deals or the tariff rates in this regard. Let it know that the American community does not know what it does with mortgage prices, credit cards and car loans.