According to Breitbart Economics Editor John Carney, the Federal Reserve’s choice to pull down rate increases at their most recent two meetings would be “looked at as a historic error because that refueled inflation,” he stated in a segment on Wednesday’s episode of Larry Kudlow’s Fox Business show.
“Many individuals,” in Carney’s opinion, “believed that inflation was on the decline. According to all the information we have about January and, as of now, February, inflation is back. The Fed resigned in December before doing so once more in the meeting that took place for January and February. And because it stoked inflation, which is now on the rise once more, that will be remembered as a historic error.”
The most recent statistics support Carney’s assertion that January’s inflationary increase “appears to be more sustained than predicted,” which he made in Wednesday’s Breitbart Business Digest:
“Many observers were quick to dismiss the January inflation spike as a seasonal anomaly or a one-time adjustment due to higher earnings and a significant increase in Social Security benefits. However, recent data shows that inflationary pressures persisted until February.”
This uptick “follows the Federal Reserve’s decision to cut down the frequency of rate hikes—a policy choice that increasingly appears like it was a mistake,” Carney said.
“The fact that Americans are becoming more gloomy about the employment situation, however, will make Fed policymakers happy,” Carney told Kudlow.
Because he has been out there attempting to argue that we need jobs to disappear, Jay Powell is quite glad to see this much sorrow in America, Carney said.
Federal Reserve officials would be “quite delighted to see that the American people are expecting there to be fewer jobs,” he said, adding that Americans are still way “too optimistic” about the employment situation.
“Only about 20% of individuals predict there will be fewer jobs in six months. Jay Powell has stated that he wants there to be significantly fewer jobs in six months. Therefore, since the Fed won’t stop until there are fewer jobs, it should be all Americans.”