Carney on ‘Kudlow’: Biden Administration ‘Undermining’ Fed Attempt to Bring Down Inflation

Breitbart Economics Editor John Carney said Thursday on Fox Business Network’s “Kudlow” that the Biden administration is undermining the Federal Reserve’s attempts to bring down inflation.

“You have to admit it is very tough to get inflation down if you have a two trillion dollar deficit and that’s where we’re going. It is $1.6 trillion now on an annual basis and it is probably going up to two they’re still spending without any pay-fors,” guest host David Asman said.

“That’s right the Biden administration has been undermining the Fed’s attempt to bring down inflation by running a very reckless fiscal policy. We’re running the kind of fiscal deficits you see in a crisis when you have unemployment 8 to 10 to 12 percent. Not when you have unemployment at 3.7 percent,” Carney said.

Carney pointed out that inflation is likely to remain high as long as the deficit remains high. As a result, the Fed will be unlikely to cut rates as many times as the market anticipates.

“There is no reason to be doing it now, yet they’re doing it. It makes the Fed’s job much harder. I think one reason inflation keep going up or at least get stuck where it is, not going down,” Carney said. “All these dreams people have of the Fed cutting this year, cutting four times, that is not going to happen. Three times is probably not going to happen. If we get one cut that will be impressive.”

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