White House National Economic Council Director Larry Kudlow speaks to reporters in the briefing room of the White House in Washington, Tuesday, Jan. 22, 2019The White House has seized on softer than expected inflation in its calls for interest-rate cuts.
At its last policy meeting, the Federal Reserve signaled it would leave interest rates unchanged for the rest of the year and penciled in one hike for 2020. After the Federal Reserve's preferred measure of inflation came in well below its target of 2% on Monday, White House economic adviser Larry KudlowBut in order for that to happen anytime soon, economists say there would likely have to be some type of external shock to the economy or a shift in policy framework.
While the economy is expected to cool in the coming months, it grew at a far faster pace than expected at the beginning of 2019. The unemployment rate has held near its lowest level in five decades, and there have been signs of upward pressure on wages.