Larry Kudlow: Wouldn’t opening oil and gas spigots to reduce inflation take pressure off the Fed?
FOX Business host Larry Kudlow calls out President Biden’s economic agenda on ‘Kudlow.’
I want to start out tonight on an optimistic note tonight by connecting the dots between a beautiful stock market rally over the past month and virtually every polling survey during the same month showing that the cavalry is in fact coming. I'm not saying there aren't any other factors in the stock rally. Of course, there are and I'm not saying that a Republican takeover of the House and Senate will solve all our problems, because it won't, but Joe Biden will still fight free market capitalism with his veto pen, unfortunately.
However, I will say, if the polls are correct — and polls don't vote only voters vote — but if the trends are right, the GOP congress will at the very least stop the bad stuff or at least the new bad stuff. There will be a lot less spending, there will be no more tax hikes. Biden's anti-business regulatory regime will at least be slowed down and maybe most importantly, the GOP will probably start immediately on January 3rd when they takeover with an H.R. 1 and S. 1, House-Senate bill that will take the handcuffs off of oil and gas production and reopen the door to fossil permitting, pipelining, refining and all the rest of it.
That's right. H.R. 1 and S. 1 could become a reality. Could it beat a Biden veto? Well, I don't know, but it might. Opening the oil and gas spigots will probably be the most important first step toward reducing inflation and a recession-ending growth plan that would liberate America's great fossil fuel industry. It would take the pressure off the Fed wouldn't it? I mean how about J. Powell getting out there and publicly calling for congress to take the handcuffs of the fossil fuel industry and suggesting and hinting that the fed's interest rate assault would come to an end if Congress began a sensible energy policy? Think about that.
Biden's radical climate change strategy had been a total disaster and the cost of living in all of its forms is the number one issue in the midterm elections. Even today we got a personal consumption price index report up 6.2% for the past year, core inflation up over 5% — both show worsening trends. Of course, the CPI is running above 8% and all in since Biden’s inauguration consumer prices have jumped almost 13% and we've discussed many times on the show the impact of fossil fuels in everyday life is enormous. Not only for oil and gas prices, or the high-priced shortage of diesel fuel or the equally high-priced home heating fuel shortage, but clothes, toothpaste, laptops, diapers, baby toys, MRI's, stethoscopes, tents, tires, toothbrushes, you could go on and on.
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But food prices have been badly impacted because fertilizers require fossils and grocery prices have increased over 17% since Joe Biden took office. So, in terms of conquering inflation and restoring prosperity, this hypothetical H.R. 1, S.1, first GOP initiative come early January might be combined with a Federal Reserve ceasefire for a quick turnaround from the stagflationary crisis in which we find ourselves. Is the stock market telling us that? Well, it might be. After all, stocks discount the future. They discount future profits, the future economy, future interest rates and even future politics. I've seen it work before. It could happen again.
Now Joe Biden's out there on the campaign trail, once again trying to rewrite history. He is simply incapable of telling the truth about the economy. His so-called closing pitch argues that he inherited a deep recession. Of course, he never mentions inflation and now he's saying if you elect Republicans to Congress they're going to make everything worse. No, they're not, Joe. No one believes you and by the way, you inherited a non-inflationary boom from former President Trump's policies and in barely more than a year you turned the boom into a bust. Meanwhile, real wages have been falling for 18 straight months for working folks and people are sitting around kitchen tables deciding to cast their votes against your socialist progressivism.
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