US economy is in a strong prosperity cycle with less inequality: Larry Kudlow
White House economic adviser Larry Kudlow told FOX Business the June jobs report is an indication that the U.S. economy is in a “strong prosperity cycle.”
“We have registered stronger economic growth with frankly less inequality,” he said during an interview on “Varney & Co.” on Friday. “Growth is faster, prosperity is stronger.”
The economy added 224,000 in June, according to the Labor Department, 64,000 more than Wall Street’s estimate of 160,000. The unemployment rate edged slightly higher to 3.7 percent, but remained near 50-year lows. The labor force participation rate ticked higher to 62.9 percent and year-over-year wages increased 3.1 percent in June, missing the 3.2 percent forecast, which should ease some concerns about possible wage inflation.
“More people working, more people succeeding, more people earning higher wages from their success does not cause inflation,” Kudlow said.
The U.S. central bank has expressed concern about inflation remaining below its 2 percent target level. Kudlow said the markets have been predicting that the Fed will likely take back its December rate hike.
President Trump has been a harsh critic of Federal Reserve Chair Jerome Powell for raising interest rates in 2018. He told reporters on Friday that if the central bank lowered rates the economy would take off like “rocket ship.”
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“[December rate hike] was probably overbaked. The Fed is independent and will act on their own time,” Kudlow said.