And he hopes that the Fed understands that too
Kudlow was speaking to Fox Business Network earlier, and he said that "more people working and faster economic growth do not cause inflation".
He says that they are expanding the economy's potential to grow and that "cannot be inflationary". Adding that he hopes that the Fed, under Powell, will share that sentiment too.
Well, I'm no rocket scientist but I go where the data tells me and what the market sees. And that is there is some form of inflationary pressure in the US economy right now. Whether or not it is due to temporary factors, remains to be seen.
Anyway, we'll also be getting the US PCE deflator figures for May later and that is the Fed's preferred measure for inflation so let's see what that will tell us.
