Thursday during an appearance on Fox News Channel’s “Fox & Friends,” White House National Economic Council Director Larry Kudlow praised Rep. Alexandria Ocasio-Cortez (D-NY) for taking on Federal Reserve Chairman Jerome Powell during a hearing a day earlier.
Ocasio-Cortez’s question dealt with the Phillips Curve theory and how it pertains to unemployment and inflation.
“I want to note in the hearings yesterday with Fed Chairman Jay Powell, it was Ms. AOC asked him about the Phillips Curve,” Kudlow said. “Why is rising growth and employment and low unemployment bad? Why does that cause inflation and higher interest rates? And Jay Powell said, ‘Well you’re right. That thing hasn’t worked in decades.’ Now, I got to give her high marks for that. She got that out of chairman.”
“By the way that is my position,” he added. “That has been the president’s position. Strong growth doesn’t cause higher inflation and interest rates. Looks like the Fed is going to cut their rates.”
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