Breitbart News economics editor John Carney said Tuesday on Fox Business Network’s “Kudlow” that a few months of weakness was insufficient for the Federal Reserve to cut interest rates.
Host Larry Kudlow said, “It looks like a slump is in process, John Carney. What do you think?”
Carney said, “So the 57% decline in GDP now is probably overstating what happened. There is no way in three weeks that the economic data really changed that much. So I would be a little wary of reading too much into that decline, but I do think that there is a real sign of a slump happening in the economy.”
Carney said, “The Fed will not cut rates. One or two months of weakness is not enough to get them to cut. There are people who are saying they will cut in July or September. I think there is no way they cut in July. The September one would create a political explosion. Plus, Larry, I do want to say while there are some signs April is very weak, May may have had a little bit of a rebound. If you look at things like jobless claims or the S&P Global PMI, it is kind of indicating that April was bad, May might not be as bad. So, you know, the GDP now number is pretty much all April numbers right now we’re just getting in May. So we could actually see a little bit of a rebound.”
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