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Home / Business / Job report shows that the country has a very strong prosperity cycle, but the Fed should still cut

Job report shows that the country has a very strong prosperity cycle, but the Fed should still cut



Larry Kudlow, Director of the United States Economic Council.

Adam Jeffery | CNBC

Larry Kudlow, director of the National Economic Council, is "very optimistic" about the health of the US economy, but believes the Federal Reserve should "take back interest rates" made in December due to low inflation. 19659002] "We are still in a very strong cycle of prosperity … We have very good pro-growth policies, low taxes, deregulation, energy opening, trade reform. I believe the grants in our supply side policies work," said Kudlow on Bloomberg TV on Friday After the release of the June work report.

Wage growth grew sharply in June, when the US economy posted 224,000 jobs against 1

65,000, according to the Ministry of Labor. However, wage growth was weak on expectations, and unemployment fell higher.

While Kudlow sees a strong economy, Kudlow believes the Fed should ease monetary policy and the reason for that is the "bottom floor" inflation rate. [19659002] Inflation is "far below Fed's goal and what most people want, and that's why they should take back the interest rate," Kudlow said. "With a weak global economy taking out insurance is nothing bad … I just don't want to interfere with this strong cycle of prosperity."

Following a report on blowout jobs, prices are still trading in a easing of monetary policy next month, focusing on 94% of quarterly points cut. The Fed will announce its political decision at the end of July 30-31 meeting.


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