Fox Business host Larry Kudlow ripped President Joe Biden over the April jobs report and spending, saying the stock market was “smarter than Biden.”
“Joe Biden was out there today crowing about job numbers [that] don’t really exist, sorry. As you may know, folks, the top line number for non-farm payrolls was 253,000 which would be a good number except for the fact the prior two months in March and February were substantially revised lower by 149,000, 78,000 in February, another 79,000 in March,” Kudlow said. (RELATED: ‘We Don’t Need 23,000 Employees’: Vivek Ramaswamy Calls For Federal Reserve Reform After Rate Hike)
“So, the net increase for April is only 104,000. It’s a big difference, a very soft number and I think Mr. Biden notwithstanding, the reason the stock market rallied 500 points or so is the market is smarter than Biden, believe it or not, and the market knows when you look under the hood it was a very soft number.”
The U.S. economy added 253,000 jobs in April, exceeding economists’ estimates of 180,000, according to the jobs report released Friday morning.
The Dow Jones Industrial Average closed at 33,674.38 Friday, up 546.64 from Thursday’s close. Kudlow expressed hope that the soft job market would cause the Federal Reserve to stop increasing interest rates to combat inflation.
The Federal Reserve increased interest rates by 25 basis points, or 0.25%, Wednesday, the tenth increase since March 2022, pushing the rates to a level not seen since the eve of the 2008 financial crisis. The rate hike came despite the U.S. economy slowing to a 1.1% growth in gross domestic product in the first quarter of 2022.
“Blue-collar real wages have fallen for the entire duration of his presidency,” Kudlow said. “Under President Trump, they exploded higher by 7.3%, way over the long-term 50-year average. Real wages have always been the soft underbelly of the Biden economy. People are working, but inflation has eroded their real income take-home pay.”
Kudlow noted that Biden’s spending caused inflation, which led to the Federal Reserve increasing interest rates.
Larry Summers, who served as Secretary of the Treasury in the Clinton administration and as an economic adviser to former President Barack Obama, warned about potential inflation in a Feb. 24, 2021 op-ed in The Washington Post, while former Obama administration official Steven Rattner warned about the inflationary risks of Biden’s spending in multiple 2021 op-eds in The New York Times.
“Over 10 years, the level of spending in the federal budget is going to continue to go up under the McCarthy proposal, but the GOP would put a speed limit, a cap, of 1% per year,” Kudlow said. “Now, frankly, nothing is gonna be cut, not in the sense a family budget would be cut, when you actually stop doing things. It just means the increase will be slower.”
“Every time you hear Biden talk about spending cuts, you’ll know he’s wrong,” Kudlow said. “He just won’t drive inside the speed limit.”
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