Former White House OMB director Russ Vought blasted Biden's economic policies and "inefficient regulations" as inflation contributors, telling "Cavuto: Coast to Coast," Tuesday, the Inflation Reduction Act, coupled with the president's student loan handout, is making the Fed's job much harder.
RUSS VOUGHT: I don’t see it changing anytime soon because one of the things I have been focused on is looking at the shelter index which is upwards of 18% or 20% and that is a huge portion of the CPI index. Those things take a long time to get factored into the CPI index because of the way one-year rental agreements play out. So we knew this was coming, and I think the market is starting to awaken to it. The Fed is awakening to it in the sense that their hope had been that they could raise to about 4% and inflation would come down and that would be the end of the pain, I don’t think that’s the case.
I think they [Fed] are going to have to raise beyond that or at least sustain that longer. The reality is the Biden Administration is making their life harder by adding more spending, student loan cancelation is upward of 75 basis points itself, and they are adding to this mix and making it harder and harder so this problem is not going away. Today the market is beginning to catch up to where the fundamentals have been all along.
WATCH FULL INTERVIEW HERE:
Former White House OMB director Russ Vought says Biden has no record of reducing the deficit and warns market fundamentals are catching up with his spending on ‘Cavuto: Coast to Coast.’