Breitbart News economics editor John Carney said Wednesday on Fox Business Network’s “Kudlow” that Federal Reserve Chair Jerome Powell may have to resign.
Host Larry Kudlow said, “This is the Fed bungle, okay? Come on. This is a revolt of the bond vigilantes. The 10 years gone, almost up 75 basis points since the Fed had the jumbo rate cut of 50 basis points. Now bond rates are pulling stocks down. The Fed looks like a damn fool. I’m sorry, but they do.”
Carney said, “They repealed the Fed’s rate cut, basically. They said Fed independence, bah humbug, the market is saying to the Fed, you did the wrong thing. And this isn’t going to go away, Larry. Right now, they do think they’re going to cut in November, but that December cut is going to come out of the market very soon because people are going to see the numbers still coming in strong.”
Kudlow said, “Trump wins, Jay Powell should resign. That’s my view.”
He added, “The economic estimates by the Fed are completely wrong. There’s a couple of things I want to chew on, but this Fed thing is such a bad story. And it’s starting to hit into the stock market. He was overly exuberantly dovish going all the way back to the Fed Jackson Hole meeting in August. I think that was the first surprise. And then the September jumbo rate cut of 50 basis points. But the rhetoric, even in September, I mean, you kind of smelled a rat way back in August. Whatever, you know, we think the Fed knows more than we do. I don’t think the Fed necessarily knows more than we do and arguably with their poor models they know less.”
Carney said, “Mary Daly just said to The Wall Street Journal yesterday that she saw no new information that would mean that the Fed should slow down cuts.”
He continued., “They’re just blind if that’s the truth. Everybody else in the market sees that obviously this was a mistake, that obviously they need to slow down the cuts at the very least, and the next move could well be up. I agree with you guys, if it’s up, Powell’s got to go.”
Carney added, “Up and out, is what I say.”
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