Thursday, January 06, 2005
Fun to see Larry Kudlow so wrong
Time after time you hear comments like those from Larry Kudlow that the supply-side effects will grow the economy without inflationary pressure.
"Since last June the fed funds rate has doubled, but long-term rates have defied conventional wisdom by actually falling. This is a great sign that neither actual nor expected inflation is a problem." Larry Kudlow, November 11, 2004
Less than two months later, just when the market is aspiring for another, the Feds themselves suggested in December the current rate is too low to contain the inflation. Although I do not usually believe the propagandas from the Feds and this might just be another example of them trying their verbal influence of the market, it at least shows the plausibility that the inflation is brewing.
"Since last June the fed funds rate has doubled, but long-term rates have defied conventional wisdom by actually falling. This is a great sign that neither actual nor expected inflation is a problem." Larry Kudlow, November 11, 2004
Less than two months later, just when the market is aspiring for another, the Feds themselves suggested in December the current rate is too low to contain the inflation. Although I do not usually believe the propagandas from the Feds and this might just be another example of them trying their verbal influence of the market, it at least shows the plausibility that the inflation is brewing.
