The Federal Reserve "hasn’t done one single thing yet to deal with inflation," economist Larry Kudlow said Sunday.
Speaking on "The Cats Roundtable radio show hosted by John Catsimatidis on WABC 770 AM, Kudlow said the Fed "has not begun to fight.
"They are still buying bonds and injecting cash into an economy that doesn’t need any more cash. They should be withdrawing cash by selling bonds from their portfolio."
He emphasized that this means "the stock market is still basking in a sea of liquidity," so the public might enjoy that for a bit longer, but he insisted that it is not going to be good in the medium term.
Kudlow said the state of the economy is not "very strong, but I don’t think it’s rolling over into recession yet," warning, however, that inflation is going to be higher.
He described the current situation as stagflation, saying "the first quarter is going to be about 2% real growth and probably about 7-8% inflation. [If] inflation is higher than growth, that’s the definition of stagflation."
Commenting on the Ukraine war, Kudlow said Russian President Vladimir Putin "is an evil man and a war criminal and should be treated as such."
He stressed that President Joe Biden is showing weakness because he is not embarrassing Putin by, for example, "seizing his yacht and creating a narrative that he is a corrupt politician who has literally stolen the work of the Russian families throughout that country. He should be blamed for that as well as his war crimes."
Brian Freeman ✉
Brian Freeman, a Newsmax writer based in Israel, has more than three decades writing and editing about culture and politics for newspapers, online and television.
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