The Biden administration continues to be “in denial” on inflation, but the American people are “not buying the product that he is selling,” particularly Wall Street with massive stock market declines and pessimism, according to former Trump chief economist Larry Kudlow.
“It’s a pretty cold stock market, which continues to get slammed,” Kudlow told Sunday’s “The Cats Roundtable” on WABC 770 AM-N.Y. “NASDAQ is now 14% below its November peak, and the Dow and S&P are down for the third consecutive week. There’s a lot of worries out there right now.”
And President Joe Biden did not do himself any favors with his shaky press conference marking the end of his first year in office, Kudlow added to host John Catsimatidis.
“You had Biden’s press conference where, instead of shifting gears away from big government socialism, he’s kind of doubling up,” Kudlow lamented. “He said the problem isn’t his policies — and the people really love him — it’s he has to go around the country and communicate better on these policies.
“I beg to differ. People are not buying the product that he is selling, and he’s in denial about inflation.”
Treasury Secretary Janet Yellen made a prediction that inflation will be just 2% by the end of the year, but Kudlow said, “I don’t know what she’s smoking.”
Kudlow said inflation will remain “not less than 5% and it could be as high as 8% or 10%.”
“They have got so much more work to do than they will admit,” he said.
“Real wages are falling because of the inflation. People are working, jobs are OK, unemployment is low. Inflation is a tax on middle income folks. I think that may start to take its toll.”
Also, an underlying problem on the economy is the impact in Democrat-run cities with crime waves and COVID-19 protocols, Kudlow concluded.
“You’re not going to return these cities to greatness until you clean the streets off,” he said.
“I understand mental problems. I understand addiction problems. But these things should be treated while in incarceration. You cannot allow these homeless villages to take over and swallow the cities. And you cannot have local authorities say, ‘no bail, no jail.’
“This has to be tightened up enormously, and it’s not yet happening.”
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