[onyx]

White House economic advisor Larry Kudlow says Fed should still cut rates despite 3.2% GDP growth

KEY POINTS

GDP grew by 3.2% in the first quarter of this year, which Kudlow called “a blow out number.”

“The inflation rate continues to slip lower and lower,” Kudlow tells CNBC.

Kudlow says the argument for cutting interest rates was coming by the Fed’s own metrics.

[pas]

Time to seriously raise interest rates and crush the economy again. You have to fight that imaginary inflation.

[xzins]

He is right. If inflation is dropping they must do something to get it back in range. That would be a quarter point cut.