For months, the Trump administration has been touting low unemployment numbers as evidence of a strong underlying economy. But if the economy is so strong, why can’t it take any more interest rate hikes?

White House National Economic Council Director Larry Kudlow insisted on Friday that the economy still “looks very good."

Yet Kudlow conveyed a near panicked concern over interest rates. He called on the Federal Reserve to take the drastic step of an immediate 50 basis point reduction in its benchmark rate.

President Donald Trump’s nominee to the Fed Board of Governors, Stephen Moore, has similarly called for the central bank to start cutting rates.

A recent development that likely alarmed the White House’s economic team is the partial inversion of the yield curve following the Fed’s last meeting. ... Read more »