LARRY KUDLOW: Don’t make Jay Powell a martyr

Don’t torture Jay Powell. He was a very bad chairman of the Fed, but he not a criminal. During his tenure, he consistently missed the Fed’s inflation targets, with the worst price increases in 40 years. He was the most political Fed chairman in memory.

Increase rates to arrest president trump The tax cuts resumed in the first term, lowering rates to re-elect Vice President Harris and the Democrats in the last election – totally political.

Many of his friends at the Fed are accused of insider trading, ethics violations, or mortgage fraud, but he has never done anything about it. He jumped on the socialist climate change bandwagon, woke, DEI, no loans to fossil fuel companies, everything is bad.

In other words, a real idiot, but I don’t think he’s a criminal. He probably testified wrongly about the Fed’s rebuilding plans before Congress, but Mr. Trump won’t be able to get his opinion. new president by the Senate until it withdraws Mr. Powell’s criminal indictment. This won’t happen.

Mr. Trump himself said last night, in a brief interview with NBC News, that “I don’t know, but he’s certainly not very good at the Fed and he’s not very good at building buildings.”

The president added: “No, I wouldn’t even consider doing it that way. What should put him under pressure is the fact that the rates are way too high. That’s the only pressure he has.”

Last summer, Mr. Trump paid an unusual visit to Mr. Powell and the Fed. And he made sure to criticize the Fed’s cost overruns in renovating its buildings, which are estimated to be at least $700 billion over budget.

At the time, Mr. Trump declined to raise the issue of criminal indictments or grand jury subpoenas. So who knows which little gremlin in the U.S. Attorney’s Office in Washington, D.C., or the main Department of Justice, decided to issue these subpoenas. Who knows? Everyone tries to play dumb and say, “I didn’t do it, I didn’t know.”

Here’s the much more important thing: Republican Banking Committee senators like Thom Tillis and others won’t confirm the name of a new Fed chairman until the subpoenas are quashed. It is therefore an exercise in futility.

Yet all this shouting and screaming about the end of Fed independence is totally overblown. There is no terrible market reaction today. The 10-year Treasury auction went well, with a gain of 4.17 percent. It was lower than the rate of 4.18 percent recorded when it was published. Hats off to my friend Peter Boockvar for this information.

Meanwhile, the S&P and Dow Jones have reached all-time highs. So no one really seems interested in this story. Here’s what interests them. The economy is growing at 5 percent or better.

Maybe it’ll hit 6 or 7 percent next year thanks to Trump’s tax cuts and deregulation and “drill, baby, drill,” with all these new economic incentives and trillions of dollars coming in from around the world. There is also incredible productivity growth of 4 percent or more.

Additionally, last year, 2.4 million family jobs were created, which was not reported in the press – 2.4 million. In addition, take-home pay, adjusted for inflation, is increasing for the first time in years. Additionally, record business profits.

Additionally, the CPI numbers are negative due to the positive oil shock. This has made the United States the fastest growing economy in the world. This is the key point at the moment. Not the cost of an old Fed elevator.