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Larry Kudlow: The Federal Reserve has never understood this
Youtubeยท 2025-10-29 21:45
Core Viewpoint - The article discusses the need for a supply-side economist to lead the Federal Reserve, emphasizing that tax incentives can drive growth while keeping inflation low [1][2][4]. Group 1: Supply-Side Economics - Supply-side economists believe that tax incentives can generate faster economic growth with lower inflation, contrasting with the Fed's traditional demand-side approach [2]. - The article argues that the Fed has historically misunderstood the relationship between growth and inflation, leading to detrimental policies [2][4]. Group 2: Federal Reserve Leadership - There are five finalists mentioned for the top position at the Federal Reserve, including Rick Ryder, Mickey Bowman, Chris Waller, Kevin Hasset, and Kevin Walsh [3]. - President Trump is expected to make a decision on the new Fed chair after Thanksgiving, as Jerome Powell's term ends in May [4]. Group 3: Economic Predictions - The article posits that tax cuts combined with tight monetary policy could achieve economic growth rates of 4% to 5% with virtually zero inflation [5].