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Sticking with the economy here one day after the latest fed announcement one -- ahead of the latest government jobs report we're getting a whole -- info.
On the US economy teach you why -- get right to it.
Brian Wesbury -- the kinds of first trust advisors they see Brian.
Good to be back with you okay so let's begin with the Fed and what concerns emerging now is that this long -- -- monetary -- Is leading to too low inflation DC is a risk.
I don't know how monetary easing leads to too low of inflation I've heard this in the last.
Weaker so it -- it doesn't make any sense Milton Friedman is rolling over in his grave if when the Fed is it when the Fed is easy we we get inflation they have the issue we have today is that the velocity of money.
Has slowed down so the Fed's printed money but the turnover of that money has slowed so.
In fact we've got a temporary a wall and inflation I do believe the next.
234 years inflation will pick up it's not going to be hyper inflation.
But we aren't in a place of -- inflation or deflation today.
I think we're -- of a position of rising and.
When trying to do understand why a lot of people are raising and -- -- got us.
Latest inflation reports are showing it running at what 1% the Fed seating comfort zone is it 2% -- to your point would not agree rolling over it's great that very clever or not.
But it's having that it wouldn't be opposite of snow and if consumers think that if prices are staying low here for the long term we're gonna delay purchases and that could be detrimental for economic growth.
Battle -- him well.
You know -- just just because two things are happening doesn't mean they're related I have made the Fed's been easy for a long time and that Chicago Blackhawks have.
Have -- a lot of hockey games it's not because the Fed's easy.
And and so when I come back and look at the economy it's their productivity is rising.
That helps dampen inflation.
Oil prices have remained -- partly because.
New drilling in the shale fields around the United States the US is becoming that.
I mean it's the Saudi America I guess you could say.
And and the bottom line is is that's helping damp inflation right now but.
With the Fed printing as much money as it is.
-- there's just no way inflation can remain this low.
For for long into the future.
And end this just takes me to one other quick point I don't believe that the stock market and corporate profits.
And the economy in these days are are growing just because the Fed is printing money.
We're we're inventing new things that cloud the Smart -- on the tablet fracking 3-D printing all of these things are driving growth and I think that's one of the key reasons the academy is up and so is the stock market.
And we -- today with the latest read on initial jobless claims much better than -- did a nice rebound so allies now focused on.
Tomorrow's next government payrolls reading coming after -- -- you know which is total -- But then again -- ADP report earlier this week was also disappointment so where are -- in the labor market sure.
You know it well if you take the ADP.
At face value we're gonna have our 38.
Months that are role of private sector job growth were at about a hundred and EB.
1000 jobs for the month of April.
That takes is back up into that higher end of the range I suppose but we -- this economy.
The plow horse economy -- it's not gonna blow the doors off it's not gonna win the Kentucky Derby.
But it isn't gonna stop either and and it's just plodding along we're getting a 150 to 200000 jobs a month.
Two and a half may -- 3% real growth.
That's what we've been seeing over the past three or four years and I think that's what we're gonna see for the next couple.
Get used to it Brian Wesbury forget tax advisor is how is -- -- in -- His some.
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