Breitbart News economics editor John Carney said Tuesday on Fox Business Network’s “Kudlow” that Democrats were pushing the U.S. economy into inflation.
Host Larry Kudlow said, “This year, John, started on a very rapid rate of inflation, it’s like it was coming back and I don’t know whether that stopped or not. It looks like a lot of energy prices coming down, but you tell me. The point is we have almost a 4.5% annualized rate of CPI inflation, the first four months of the year this being the fifth month of the year.”
He asked, “What say you?”
Carney said, “This is exactly why Wall Street was very relieved and the Fed was relived to see these numbers because the danger was inflation would keep re-accelerating. But I will say when I looked at these numbers there’s troubling statistics in it. If you remember all the way back in April we had soft retail sales. What happens when you have soft retail in April you then get soft price pressure in May. So what we are seeing is actually the softening of retail sales in April led to low inflation in May. That disrupts the Immaculate disinflation story. Because if the only way we can get inflation down is to soften the economy that raises the risk that we could be headed for a recession.”
He added, “We have an inflationary party right now in the United States and they are called the Democrats. They are pushing us into inflation. The Fed has to fight with higher interest rates and that’s exactly what is happening.”
Follow Pam Key on Twitter @pamkeyNEN
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