Economic guru Larry Kudlow is urging the Federal Reserve to step lightly as it proceeds to tinker with monetary policy while the Trump administration and Congress struggles to enact corporate tax reform.
“The Fed should restrain its restraint. They should go very, very slowly here,” he told CNBC when asked about his prediction of future rate hikes this year.
“As long as the market indicators are calm and steady, I say to the Fed halt your fire and wait. Wait for corporate tax cuts,” said Kudlow, a Newsmax Finance Insider, radio talk-show host and CNBC senior contributor.
“More people working more hours does not cause inflation. That’s a good thing, not a bad thing. Prosperity does not cause inflation,” said Kudlow, who served as the Trump campaign’s senior economic adviser.
“Monetary policy affects inflation. If the Fed is creating too much money, you’ll see it in a crashing dollar, in a soaring gold