Economic guru Larry Kudlow doesn’t quite understand why the Federal Reserve reportedly is so worried about low inflation.
“Low inflation is a very good thing. Low inflation is great,” the veteran financial guru and former Ronald Reagan adviser told CNBC.
“It’s the pathway to higher growth and real income,” said Kudlow, a Newsmax Finance Insider, radio talk-show host and CNBC senior contributor.
To be sure, as the world’s top central bankers gather in Wyoming this week, their relief about a stronger global economy will be tempered by a growing unease that inflation remains inexplicably low.
Inflation may be the most pressing riddle facing central banks, which are failing to meet their price mandates.
U.S. inflation fell to 1.4 percent in June, based on the Fed’s preferred gauge, and consumer prices in the euro area — currently at 1.3 percent — have wavered since the start of the year. Both central banks shoot for 2