Thursday on Fox Business Network’s “Kudlow,” host Larry Kudlow discussed the Federal Reserve’s “groupthink” on tariffs and inflation.
Kudlow said, “Other war, as Breitbart’s John Carney put it. The Federal Reserve has gone to war against tariffs. Now, unlike the Middle East, this here is a phony war. The fed stubbornly refuses to lower its target rate because they decided that Mr. Trump’s tariffs will increase inflation. So I ask why exactly is your model of tariff inflation? Because so far, with a 10% baseline tariff in recent months, inflation rates have actually come down, not up. Since January, the CPI is is down to only 1.4% annually. That’s below the Fed’s 2% target. So tariff inflation has been missing in action. And Jay Powell
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