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NOTNational Economic Council chief Larry Kudlow on Thursday defended the US Federal Reserve against President Donald Trump's criticism that the central bank would raise rates too quickly.
"I think [Fed Chairman] Jay Powell is on target, "Kudlow said in an interview Thursday morning at CNBC.
"There is no reason for economic growth to cause inflation," he said.
Kudlow noted that the Fed had already raised rates seven times during the prolonged rally in equity markets that the United States has enjoyed over the past two years. The Fed has raised the basic interest rate it sets to allow banks to borrow it gradually after years of historically low interest rates. The Federal Reserve raises interest rates to reduce inflation, the price measure.
President Trump has appointed Powell, but the Fed chairman is granted independence to allow the central bank to make decisions based on the health of the economy rather than political considerations.
"There is nothing new here, as far as I know, we all know the Fed is independent," Kudlow said, downplaying the president's lingering criticism of recent Fed decisions. in interest rates. Nurtured, he did not say anything like it from a distance.
Trump called "Fox and Friends" earlier Thursday morning in part to criticize the Fed's rate hike, saying he was now paying higher interest on his own debt.
On Wednesday, Trump said the Fed "went crazy".
"I think it's agreed here that strong economic growth does not cause inflation and does not cause panic rise in interest rates," added Kudlow.
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