Fed should lower inflation target to zero, Larry Kudlow says

Fed should lower inflation target to zero, Larry Kudlow says
Fed urged to aim for zero inflation

Larry Kudlow highlights comments from economist Art Laffer on the Federal Reserve's target inflation rate. Laffer argues that the Fed should not stop at a 2 percent inflation target and instead push for zero inflation, suggesting there is no justification for maintaining any level of inflation in the U.S. economy.

Kudlow has previously discussed economic cycles, noting Kenneth Fisher's view that the nine months following U.S. midterm elections have historically produced strong stock performance in his article on midterm periods and equities. He has also highlighted factors behind robust economic growth, citing energy sector strength and manufacturing expansion in his coverage of the Trump-Bessent economic boom. These past comments frame Kudlow’s recent attention to monetary policy debates.

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