Kudlow: Fed pumping cash into economy won't tame inflation
Stagflation fears rattling consumers amid high inflation rate
Kudlow explains how inflation can be tamed
FOX Business' Larry Kudlow discusses inflation and argues the U.S. doesn’t need the Federal Reserve to keep pumping money into the economy.
FOX Business host Larry Kudlow told, "Cavuto: Coast to Coast" Wednesday that the Federal Reserve "pumping cash" into the economy will not tame inflation amid stagflation concerns.
US INFLATION EXPECTATIONS SURGE TO HIGHEST LEVEL SINCE 2013
LARRY KUDLOW: We have more money than we know what to do with, and so the Fed is doing these…reverse repurchase agreements for five basis points. They'll take the money and they'll give it for five basis points. They'll give them a Treasury bill…that is 1.3 trillion of that going on every day.
…Supply shortages, that eventually [will] get worked out, don't ask me when, but eventually, it will. We can open up containers and we can get truck drivers, and we're going to have to pay them a good wage. OK? Not easy, but we can solve that, right? But the Fed pumping out all this cash constantly week after week…I mean, M2 is now growing at 12 or 13 percent. We're well into this recovery…We don't need that…that will increase inflation.
WATCH THE FULL INTERVIEW BELOW:
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