Kudlow: This year's economic boom will be stifled

'Joe Biden is operating on the socialist side'

Fox Business host Larry Kudlow warns the economic recovery America is seeing could be ruined if President Biden's full economic plan is passed by Congress, which he believes will depreciate the value of the dollar, on "Kudlow."

LARRY KUDLOW: The Fed has become less doveish. They're penciling in a 50 basis point rate hike before the end of 2023. Now that's still a long ways away and I don't know if they can hold that, we'll see. In fact, there's a long of things I don't know, honestly. Including whether this inflation spike is temporary or longer-lasting. I'm still not sure, I'm not jumping necessarily on the bad inflation long-run bandwagon. 

I will say this, if the Biden economic strategy gets through, if it goes through Congress and legislation with reconciliation, it has enormous recovery, killing tax hikes, green new deal, cradle to college, social spending with no work requirements. All that is going to shut off the supply side of the economy. This year's boom will be stifled, and if the Fed then kept printing large quantities of free money, the dollar will depreciate substantially and you will generate conditions for inflationary stagnation. Donald Trump operated on the supply side. Joe Biden is operating on the socialist side, kind of Jimmy Carter with a socialist spin, sort of Bulgaria before the Berlin Wall came down. In other words, not good, but I don't know that all that's going to necessarily get passed through Congress. I'm still hoping the forces of goodwill whoop the forces of evil in the American Congress.