Larry Kudlow calls for ‘completely different Fed’ after central bank finally lowers interest rates amid Trump fight

Daily Caller News Foundation

Economist Larry Kudlow told Fox Business on Wednesday that the Federal Reserve needs a complete overhaul.

The Federal Reserve cut interest rates by a quarter-point on Wednesday after a two-day meeting, responding to mounting pressure from President Donald Trump to slash rates more aggressively. During a segment on “The Big Money Show,” Kudlow said the Federal Reserve had lost control of its mission and credibility, adding that the Federal Reserve needs to be overhauled from top to bottom.

“We need a completely different Fed. We need, from top to bottom,” Kudlow said. “Monetary policy, regulatory policy, their budget, their budget is running up, what did I see? A 300% rate in the last few years on the J-PAL.”

Kudlow blasted the Fed’s “extraterrestrial” monetary experiments and said they have delivered neither sound money nor a stable dollar.

WATCH:

“Their regulatory interference is unbelievable. Their monetary experiments are extraterrestrial. Nothing has worked in years. They’re not giving us sound money,” Kudlow said. “They don’t give us a stable dollar. They don’t give us any certainty or reliability that the dollar you have tomorrow will be worth the same as it is today.”

The Federal Reserve moved to lower interest rates following weaker-than-expected job growth. The August employment report showed a modest gain of just 22,000 jobs, well under economists’ forecasts, while updated figures from the Bureau of Labor Statistics said the economy actually created 911,000 fewer jobs over the past year than previously estimated.

Meanwhile, inflation ticked up, with the consumer price index rising to 2.9% in August from 2.7% the month prior.

On the same day as the rate cut deliberations, the Senate approved Stephen Miran — head of the Council of Economic Advisers — to succeed Adriana Kugler following her resignation in August. A federal appeals court also sided with Fed Governor Lisa Cook, allowing her to remain in office while she contests Trump’s decision to fire her.

Miran cast the lone vote in favor of a deeper half-point cut, dissenting from the rest of the committee. Treasury Secretary Scott Bessent, for his part, advocated for an independent examination of the central bank, warning that the increasingly partisan leanings of its regional board members had eroded public confidence.

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