GALLON GALLON.
>>.
>> .
>> WELCOME BACK THE FINAL READ
FOR THE FIRST QUARTER GDP DOWN
A WORSE THAN EXPECTED 1.6%,
JOINING US RIGHT NOW TO REACT
IS KUDLOW HOST LARRY KUDLOW
GREAT TO SEE YOU.
THANKS VERY MUCH.
THIS IS WORGS THAN EXPECTED
DOWN 1.6% DO YOU THINK WE ARE
IN A RECESSION RIGHT NOW?
>> WELL, LOOK, I WOULDN’T MAKE
THE CALL BASED ON YOU KNOW THE
TINY REVISION ONE-TENTH OF 1%,
BUT IF YOU LOOK AT THE GDP
TRACKER, FROM THE ATLANTA FED,
NOW THAT IS THROUGH MAY, SO
THEY’RE SAYING 0.3%, SO THE
FIRST HALF OF THE YEAR, YOU
KNOW COULD BE FLAT, COULD BE
SLIGHTLY NEGATIVE, WHATEVER.
I THINK BECAUSE OF INFLATION
PROBLEM, AND A COLLAPSE IN
CONSUMER CONFIDENCE PROBLEM,
AND -- THE FED IS GOING TO BE
RAISING RATES SIGNIFICANTLY
MORE THAN THEY HAVE ALREADY.
SO I WOULD JUST SAY MARIA, WE
ARE PROBABLY ON THE FRONT END
OF A RECESSION, I DON’T KNOW
THAT ACTUALLY IN ONE JUST YET,
BUT THE OUTLOOK IS NOT GOOD
OUTLOOK IS NOT GOOD.
THIS IS YOU KNOW, WITH SELF
AFFLICTED PROBLEMS FROM BIDEN
ADMINISTRATION PARTICULARLY
OVER REGULATION THE ENERGY
SECTOR, BUT A LOT OF BLAME
SOMETHING TO AROUND FEW OF
SPENDING TOO MUCH REGULATING
BUSINESS FEDERAL RESERVE WAS
WAY, WAY BEHIND THE CURVE
GOING TO HAVE TO CATCH UP IT
IS NOT A GREAT OUTLOOK, I
THINK INFLATION IS GOING TO BE
VERY STICKY, I MEAN SOMEONE
TOLD ME ONE PRODUCER SAID CORE
INFLATION RATE FROM GDP
REPORT, WAS 5.2%, I MEAN I
THINK THAT IS GOING TO BE VERY
STICKY I THINK THE CORE
INFLATION RATE COMING UP IS
GOING TO BE CLOSER TO 6%, AND
SO LOOK AT THIS, INTEREST
RATES SHOULD BE ABOVE, RIGHT,
NOMINAL RATE ABOVE INFLATION
RATE IF 6, 7% TARGET RATE A
BIG PROBLEM FOR THE ECONOMY,
AND THE FED IS NOT GETTING ANY
HELP FROM -- THERE IS NO
SUPPLY-SIDE FISCAL POLICY NOT
GOOD OUTCOME.
>> TALKING ABOUT MORE SPENDING
YOU KNOW CHUCK SCHUMER WANTS,
A RECONCILIATION PACKAGE
INCLUDES INCREASES IN TAXES TO
ONE AND A HALF TRILLION
DOLLARS TAX INCREASES LARRY I
WANT YOU’RE TAKE WHAT THE REST
OF THE YEAR LOOKS LIKE LAST
WEEK VERY PRESTIGIOUS
UNIVERSITY MICHIGAN CONSUMER
SENTIMENT INDEX OUT DOWN
14.4%, THIS, JUNE, 50 INDICES
LOWEST READING SINCE 1952 LOOK
AT CONSUMER THAT HAS MONEY,
HAS GOOD SAVINGS, NOW STARTING
TO CUT INTO SAVINGS BECAUSE OF
THE LEVEL OF INFLATION.
YOU JUST SAID A MINUTE AGO THE
FEDERAL RESERVE IS GOING TO BE
RAISING FRRTS EBB THEY’VE BEEN
INCREASING FED HAS TO BE
STOPPED BECAUSE MARKETS SO
VOLATILE.
>> WELL, LOOK, ON YOUR POINT I
THINK MICHIGAN CONSUMER
SENTIMENT AS YOU KNOW
CONFERENCE BOARD CONSUMER
SENTIMENT WAS VERY, VERY POOR
ONE KEY POINT HERE EXPLOSIVE
ENERGY PRICES, GASOLINE, SO
FORTH DIESEL OF YOU ALSO GOT
EXPLOSIVE FOOD PRICES, I MEAN
GROCERY STORE IS VERY BAD.
AND AT THE SAME TIME WAGES ARE
RISING ABOUT 6%.
BUT THE REAL WAGE NUMBER HAS
FALLEN BY 3 PERCENTAGE POINTS
OVER THE PAST 12 MONTHS.
MARIA: RIGHT.
>> SO YOU’VE GOT, GROCERY
ENERGY, AND HOUSING ALL THAT
RISING, BUT THE INFLATION RATE
IS RISING FASTER.
SO YOU’VE GOT WILL ALSO A WAGE
PRICE SPIRAL, THIS IS GOING TO
FORCE THE FED INTO VERY, VERY,
VERY TOUGH POSITION, YOU HEARD
JOHN WILLIAMS I THINK
YESTERDAY, FROM NEW YORK FED
SAYING THE TARGET RATE HAS GOT
TO BE ABOVE INFLATION RATE, I
THINK THIS IS -- LOOK IF THEY
ARE SMARPT WHICH THEY ARE NOT
BIG GOVERNMENT SOCIALISTS NOT
GOING TO HELP OUT THEY SHOULD
MAKE TRUMP TAX CUTS PERMANENT
DID HE REGULATING ENERGY
SECTOR ALLOWING DRILLING
PIPELINES REFINING THEY SHOULD
BE REREGULATING ALL BUSINESS
THEY WON’T DO THAT, SO THE
SUPPLY-SIDE OF THE ECONOMY
STIFLED FED HAS TO SLAM DOWN
DEMAND SIDE YOU GOT A PROBLEM
I CAN’T GET AROUND IT I WOULD
LIKE TO BE LOOK, I WANT YOU
KNOW I AM PURSUING I WANT TO
RESTORE LIFE, LIBERTY PURSUIT
OF HAPPINESS OUR THEME.
>> YOU GOT A SPECIAL -- 4 PM
NEW SPECIAL KUDLOW REWARDING
LIFE, LIBERTY PURSUIT OF
HAPPENNESS TALKS ABOUT HOW BAD
THINGS HAVE GOTTEN UNDER
PRESIDENT BIDEN’S LEADERSHIP
WHERE IS LIFE, LIBERTY,
PURSUIT OF HAPPINESS.
>> I THINK COMING THE CALVARY
IS COMING LIKE DECLARATION OF
INDEPENDENCE THE VOTERS ARE
GOING TO HAVE A PEACEFUL
SEPARATION FROM THE PRESENT
GOVERNMENT VOTERS GOING TO
REMOVE THEIR CONSENT OF THIS
GOVERNMENT, WHICH IS
ESSENTIALLY THAT BIG
GOVERNMENT STARTS -- A ROUT
COMING IN NOVEMBER YOU ARE
GOING TO SEE COMPLETE CHANGE,
IN ATHLETES THE CONGRESS CAN’T
CHANGE WHITE HOUSE BUT FROM
THE DECLARATION IN ORDER TO
CHIEF LIFE, LIBERTY PURSUIT OF
HAPPINESS THERE IS GOING TO BE
A GREAT SEPARATION MARIA NOT
FROM YOU BUT FROM THE BIDEN
ADMINISTRATION, AND NANCY
PELOSI.
I DON’T EVER WANT IT SEPARATED
FROM YOU --
>> QUICK.
>> QUICK DEBATING REGULATION
OR NOT ALL AGREE INFINITE OR
IN IT HOW LONG IS IT GOING TO
LAST DOES THIS ROUT IN
NOVEMBER YOU ARE PREDICTING
HAVE IMPACT ON THAT?
>> WELL, LOOK.
THE NEW A NEW CONGRESSLET CALL
IT A CAPITALIST CONGRESS CAN
STOP BAD STUFF THEY CAN STOP
TAXING, THEY CAN STOP -- CAN’T
STOP ALL REGULATIONS, SO IT
WILL HELP BUT I THINK THE
SLUMP WITH HIGH INFLATION, AND
LOW GROWTH, OR NEGATIVE
GROWTH, I THINK WE’RE IN FOR I
DON’T KNOW 12 TO 18 MONTHS
MAYBE AS LONG AS TWO YEARS
GOING TO BE VERY DIFFICULT TO
DYING OUT OF THIS.
AND --
>> WE’RE SEEING IT TAKE PLACE
THE HOUSING MARKET WAS FIVE
PLUS FOR MORTGAGE OPERATES
ALMOST 6% MORTGAGE RATES
DESTRUCTION THERE FED SLAMMING
ON BRAKES LARRY WE ARE
WATCHING YOU TODAY AT 4 PM