>> Brian: TODAY THE
FEDERAL RESERVE EXPECTED TO HIKE
INTEREST RATES FOR THE THIRD
QUARTER IN A ROW, IN A PUSH TO
CONTROL INFLATION, THEY SAY.
>> Ainsley: THIS COMES AS A
NEW POLL IS SHOWING NEARLY
TWO-THIRDS OF VOTERS SAY THEIR
FAMILY INCOME IS FALLING BEHIND
THE COST OF LIVING.
>> Steve: DESPITE THIS
CRIPPLING COSTS, "FORTUNE"
MAGAZINE TELLS AMERICANS TO BE
HAPPY ABOUT INFLATION.
SOMEBODY WHO IS NOT HAPPY ABOUT
INFLATION IS FOR A NATIONAL
ECONOMIC COUNSEL DIRECTOR AND
THE HOST OVER ON FOX BUSINESS,
LARRY KUDLOW.
HEY, LARRY.
>> HI.
HELLO, GOOD MORNING.
>> Steve: IT’S GOOD TO HAVE
YOU.
THE FEDERAL RESERVE IS GOING TO
JAM THE BRAKES AND TRY AGAIN,
THEY’RE GOING TO HIT THREE
QUARTERS OR 1%.
THEY ARE TRYING TO SLOW THINGS
DOWN.
UNFORTUNATELY, WHEN THEY DO
THAT, PEOPLE LINED UP IN A
PAINFUL SITUATION.
THINGS COST MORE AND PEOPLE LOSE
THEIR JOBS.
>> YEAH, YOU ARE RIGHT ABOUT THE
PAIN.
IT’S TOO BAD THE FED DIDN’T
START THIS ABOUT 15 OR 18 MONTHS
AGO, BECAUSE THEY NEVER TOOK IT
SERIOUSLY.
LIKE THE BIDEN ADMINISTRATION,
THEY CALL IT TRANSITORY.
SO WE ARE IN A HOLE, WE ARE IN A
TOUGH PICKLE RIGHT NOW, A DEEPER
DISH.
THEY ARE GOING TO TIGHTEN,
THEY’VE GOT THEIR MANHOOD BACK.
JAY POWELL HAS GROWN NEW HAIR ON
HIS CHEST.
[LAUGHTER]
HIS HERO NOW IS PAUL VOLCKER,
WHO WAS A BOSS OF MINE MANY,
MANY DECADES AGO.
AND THEY WILL GO 75 TODAY.
THAT’S THE CONSENSUS.
I BELIEVE THEY SHOULD GO A FULL
PERCENTAGE POINT AND THEY SHOULD
GO A FULL PERCENTAGE POINT IN
NOVEMBER, AND A FULL PERCENTAGE
POINT IN DECEMBER.
IN OTHER WORDS, RIP THE BAND-AID
OFF, TAKE THIS DOWN.
THE FASTER THEY ACT, THEY WILL
CHANGE EXPECTATIONS FROM HIGH
INFLATION TO PRICE STABILITY,
AND THE ECONOMIC DAMAGE, I
THINK, WILL BE MUCH LESS ON MUCH
SHORTER.
IT WOULD BE HELPFUL IF WE HAD
TAX CUTS AND DEREGULATION AND
OPENING THE OIL SPIGOTS FROM
FISCAL POLICY.
THAT WOULD AMELIORATE THE DROP
IN THE ECONOMY.
BUT I DON’T THINK THAT IS LIKELY
UNTIL THE CAVALRY COMES IN
NOVEMBER.
SO THE FED WILL BE TOUGH TODAY,
VERY TOUGH.
>> Brian: LET ME ASK
SOMETHING.
IF THAT’S HIS HERO, DIDN’T PAUL
VOLCKER CUT SPENDING AT THE SAME
TIME?
>> HE DID.
LOOK, HE WORKED WITH REAGAN.
WE HAD SPENDING CUTS, DOMESTIC
SPENDING CUTS, TAX CUTS, ENERGY
DEREGULATION, AND OF COURSE HE
THEN PULLED THE MONEY SUPPLY OUT
AND RAISED NOMINAL AND REAL
INTEREST RATES A LOT.
SO YEAH, IT WOULD BE NICE IF WE
HAD -- YOU KNOW, THIS IS A
STRANGE STORY BECAUSE THE
FEDERAL GOVERNMENT, CONGRESS AND
THE WHITE HOUSE, INCREASING
SPENDING.
RECENT BILLS ARE GOING TO
INCREASE SPENDING BY, I DON’T
KNOW, $2 TRILLION OR SOME SUCH.
SO THEY ARE PUTTING MONEY IN AND
THE FED IS TRYING TO TAKE MONEY
OUT.
THAT’S A VERY BIZARRE SITUATION
WHICH IS PROBABLY GOING TO MAKE
THINGS EVEN HARDER TO
ACCOMPLISH.
>> Ainsley: LARRY, ON
FOX NATION YOU HAVE THE
UNAUTHORIZED HISTORY OF
SOCIALISM, A LIVE SUMMIT THAT
WILL STREAM AT 11:00 A.M. TODAY.
I UNDERSTAND BRIAN WILL TAKE
PART IN THIS.
TELL US MORE ABOUT IT.
>> ONE OF THE BIG QUESTIONS IS
WHICH SIDE BRIAN WILL BE ON,
SOCIALISM OR FREEDOM AND
DEMOCRACY.
[LAUGHTER]
WE WILL HAVE TO WORK THAT OUT
LATER TO ATTRACT THE VIEWERS.
LOOK, THIS IS GOING TO BE A
DISCUSSION ESSENTIALLY OF
TOTALITARIANISM VERSUS FREEDOM
AND DEMOCRACY.
BETWEEN A STATE-RUN ECONOMY AND
A FREE MARKET ECONOMY.
BETWEEN HUMAN ACTION VERSUS
STATE ACTION.
WE WILL LOOK AT ALL OF THE PROS
AND CONS.
I CAN TELL YOU RIGHT NOW, I AM
NO FRIEND TO SOCIALISM.
I THINK YOU ALL KNOW THAT.
ONE OF THE THEMES IN THIS TODAY
IS GOING TO BE, HOW DO WE STOP
THE DRIFT TOWARD SOCIALISM THAT
IS GOING ON IN WASHINGTON, D.C.?
FOR EXAMPLE, THE GREEN NEW DEAL
AND ALL THE CLIMATE CHANGE
REGULATIONS, THAT IS A VERY
POWERFUL FORM, OF REGULATORY
STATE RUN CENTRAL PLANNING.
IT’S BEING JAMMED DOWN OUR
THROATS.
YOU PROBABLY SAW THE STORY
YESTERDAY WHEN THE INTERIOR
DEPARTMENT JAMMED IT DOWN THE
THROATS OF THE NATIVE AMERICANS
AND THE NAVAJOS WHO WOULD LIKE
TO DRILL AND THE INTERIOR
DEPARTMENT ALL OF THEM.
THE APPROACH TO COVERT, CENTRAL
PLANNING, JAMMING IT DOWN OUR
THROATS.
THE MISINFORMATION CENSORSHIP,
JAMMING IT DOWN OUR THROATS.
SO WE WILL WALK THROUGH THAT.
WE HAVE GOT A LOT OF OUTSTANDING
PEOPLE.
NEWT GINGRICH IS GOING TO BE ON.
I MENTIONED BRIAN, SANDRA SMITH,
STEVE MOORE, MARY O’GRADY.
IT’LL BE A TERRIFIC CROWD.
AND WE ARE GOING TO HEAR FROM
ONE OF MY IDOLS, A FAMOUS
ECONOMIST WHO TALKED ABOUT
FREEDOM VERSUS SOCIALISM.
EVEN THOUGH HE DIED IN 1950, HE
IS GOING TO COMMUNE WITH US
LATER IN THE SHOW AND TELL US
WHETHER WE ARE IN THE RIGHT
DIRECTION OR NOT.
>> Brian: BUT I REMAIN THE
HEADLINER, THAT IS CLEAR.
[LAUGHTER]
>> THAT WAS A JOKE!
ASKED MEGAN I
WENT GOT MY JOKE!
GOLLY, I WAS WORKING ON THAT.
SORRY.
>> Brian: WILL GET IT LATER