Larry Kudlow, a former economic adviser to former President Donald Trump, shared his reactions Friday night to the federal government’s jobs report for December, which was released earlier in the day.
During an appearance on “The Ingraham Angle,” Kudlow agreed with host Laura Ingraham’s assertion that President Biden largely benefited from actions taken in Republican-led red states to keep the economy on track as the coronavirus pandemic continues.
Biden placed his own spin on the data, stressing a decline in unemployment instead of the fact that new hiring fell far short of expectations.
Kudlow also issued a warning for the near future, claiming that more spending by the Democrats could delay a full economic recovery until several years down the road.
US HIRING COOLS IN DECEMBER AS ECONOMY ADDS JUST 199,000 NEW JOBS
LARRY KUDLOW: Those red states ended the excessively generous unemployment benefits, three or four months earlier, before the federal government did – and many more people returned to work because of that.
So I think you’re making a good argument that a lot of the plusses in the jobs report today come from those very red states.
But, you know, [Biden’s] contribution here, for that $2 trillion package last winter, which [former Treasury Secretary] Larry Summers, Democrat, and other Democrats – and I agree, [former Trump adviser] Kevin Hassett and I agree – that’s what triggered this massive inflation.
And Joe Biden’s hanging tough on this $5 trillion package, which I believe we are going to kill the bill. So if left to his own devices, Biden will be a disaster.
But we have a problem, Laura. You know why? Interest rates are going to go up, the Federal Reserve’s going to have to switch policies to much tighter money. That’s going to damage the economy.
It’s not going to be easy, it’s not going to be a soft landing – and it’s probably going to hit ’23 and ’24. I mean it – ’23 and ’24.
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