Liz Peek joined Larry Kudlow on Fox Business after the Federal Reserve raised rates by 25 basis points, discussing inflation, growth and the outlook for monetary policy.
Peek said the rate increase was understandable given persistent inflation, but questioned why Fed Chair Kevin Warsh did not more forcefully explain its counter-inflationary purpose or make clearer that it might be a one-time move rather than the beginning of a new hiking cycle.
She pushed back on the idea that the investment boom is itself inflationary. Capital flowing into AI data centers, equipment and reindustrialization is not competing with consumers buying groceries, she said; it is financing business growth. A stronger dollar and a smaller Fed balance sheet, she argued, would also help bring down prices and lower rates over time.
With the Dow selling off after the announcement, Peek said the market’s reaction was puzzling because recent economic and retail-sales data have been stronger than expected. Her concern was that Warsh had not fully stood by the growth-and-productivity case he made before taking the job.
Source: Fox Business, Kudlow
