Mike Faulkender, AFPI Chief Economist, joined Kudlow on Fox Business to discuss the economy.

In a recent interview on Fox Business's "Kudlow," Mike Faulkender, AFPI Chief Economist and former Assistant Treasury Secretary, joined Larry Kudlow to discuss the current state of the economy and inflation. Faulkender highlighted the ongoing inflationary pressures and criticized the Biden administration's economic policies.

Larry Summers, a former Treasury Secretary, had recalculated the Consumer Price Index (CPI) to include mortgage rates and car loan rates, revealing a much higher inflation rate than reported. According to Summers, the recalculated CPI would have shown an 18% inflation rate last year, with a current rate around 7%. Faulkender emphasized that personal borrowing costs, such as credit card rates, should be included in CPI calculations as they significantly impact consumers.

Faulkender pointed out that mortgage payments have increased by 60% since President Biden took office, reflecting the inflation not captured by current CPI measures. He stressed the importance of including these costs in economic assessments, as they represent a substantial burden on households.

The discussion also touched on the Federal Reserve's policies, with Faulkender and Kudlow expressing skepticism about the Fed's handling of inflation. They noted that the Fed's measures might be politically influenced, potentially affecting the upcoming election.

Faulkender called for a reevaluation of economic policies to address inflation effectively, highlighting the need for accurate inflation measurements that reflect real-world costs.