Rate which is about what you and i i promised on your show a few months ago was going to hit. if you look at the last six months is going eight-point something percent. it is accelerating inflation. you can ask yourself why is inflation accelerating? it is because basically the fed is not done that much they ve done a little bit of typing but the interest rate is way below where it needs to be to help get inflation under control in fiscal policy continues to drive things in the opposite direction. president biden did a heck of a lot of finger-pointing in that press conference. but if i were there, it would have loved to ask a few questions about how paying people not to work and removing work incentives and threatening massive corporate tax hikes which i have seen as a put in the wall street journal last week, that has driven multinational activity overseas again. all of the stuff he has done in shutting down pipelines has spread inflation. and if he does not take credit
President biden said his policies are not to blame. i think our policies help not hurt. think about what they say the vast majority of the of the economists think this is going to be a really tough problem to solve but it is not because of spending. we brought down the deficit by. spring and kevin he s former chairman of the council of economic advisers under president trump and distinguished visiting fellow at the hoover institution. so kevin, welcome. the scout but was this is going to be the peak of inflation, how do you see it? yes, you and i ve talked about this before. one of the things i like to do is look at the more recent numbers instead of the change over the whole last year. because at the beginning of the year inflation was not so bad. the average, last three months of consumer price inflation and then annualize it right now is going up at 10% at an annual
That s with the fed saying we only have to go to 3% to get inflation under control. are you saying inflation has to go a lot higher than that? or inflation is so high interest rates have to go by. i m sorry interest rates have to go up. what is going to happen is interest rates will go up to three com inflation will stay about where it is. and then markets will think the fed is going to have to move more you will see more of the economy declined we ve seen this year don t forget the last iran the numbers for year to date both the s&p 500 and nasdaq have had their worst year since world war ii. so the year to take decline the steady march of downward is something i think is going to continue. normally a drop happens with a collapse, this is been kind of like an orderly retreat that is not all the way there yet. if we had seen inflation sort of go down to seven and a half in the latest reports and then we can say the tightening starting
Were back to record highs. trying to play pick a political site. paul: dan if you re responding to republicans on inflation but would you suggest they do or they say be there policy? biden seems to be saying got no answers go with mine. well, you know believe it or not i think i would throw the mega argument right back at them. because donald trump s economy, setting trump aside most are trying to make a distinguish between trump and his economy. it was strong, inflation was low and unemployment was very low. there is a lot of deregulation. in other words they did release the private sector. my argument would be coming out of a pandemic we have the lockdown because of the coronavirus. it is time to let the private
Inflation is bad for the country for the party in power politically. and they have no answer for why, after all of this spending we ve got 8% inflation. people are hurting and as a result they are falling back on these preposterous arguments which i guess from their point of view is better than saying nothing. paul: kim, one of its arguments is the ultra mega republicans which sounds like a tempted to link the congressional races to donald trump. is that going to fly? i know donald trump would like to get in there too. he always wants to be the center of things but is not going to be on the ballots, is that going to work for democrats? first of all they ve tried everything else it s not working which owns a price hike, lockdowns, supply chain issues the american public is not buying it. try donald trump two, paul. they did it last year with all kinds of special elections in