John Carney, economics editor at Breitbart News, said on Fox Business Network’s “Kudlow” show on Tuesday that Democrats are inflating the U.S. economy.
Host Larry Kudlow said, “John, inflation has risen very sharply this year and appears to be rising again, and I’m not sure if it’s stopped. Energy prices appear to have fallen significantly, so what? The key thing is, through the first four months of this year, the fifth month of this year, Consumer Price Index (CPI) inflation is at nearly a 4.5 percent annualized rate.”
He asked, “What do you think?”
“That’s exactly why Wall Street was relieved and why the Fed was relieved when it saw these numbers, because there was a danger that inflation would continue to accelerate again. But I will say, when you look at these numbers, there is a worrying statistic. Remember, retail sales were weak in April. Weak retail sales in April leads to weak price pressures in May. So, weak retail sales in April led to low inflation in May. This breaks the perfect disinflation story, because if the only way to contain inflation is to have a weaker economy, then the risk of heading towards a recession increases,” Carney said.
He added: “Right now we have an inflationary party in the US, they’re called the Democrats, and they’re pushing inflation. The Fed has to fight back by raising interest rates, and that’s exactly what’s happening.”
Follow Pam Key on Twitter Follow
