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

Mike Faulkender, Chief Economist at the America First Policy Institute and former Assistant Treasury Secretary for Economic Policy, joined "Making Money" on Fox Business to discuss the current economic landscape. Faulkender addressed the perplexing mixed signals from the economy, highlighting the inflationary pressures that persist despite job growth. He noted that much of the job growth is driven by government-funded services, particularly healthcare.

Faulkender expressed skepticism about the Federal Reserve's ability to maintain its 2% inflation target, citing the challenges posed by ongoing government spending and regulatory policies. He criticized the Biden administration's recent mandate to transition goods transportation to electric vehicles, arguing that such moves exacerbate inflation.

The discussion also touched on the broader economic impacts of rising commodity prices, including gold and oil, which suggest continued inflation ahead. Faulkender emphasized the need for a holistic approach to curb inflation, pointing out that fiscal and regulatory policies need to align with monetary policy efforts.

Faulkender warned that the alignment between the Federal Reserve and the Treasury, particularly under Janet Yellen's tenure, has facilitated excessive fiscal spending. This coordination, he argued, has contributed to the inflation burden on average Americans, particularly low-income households.

In conclusion, Faulkender underscored the importance of addressing the root causes of inflation through balanced fiscal and regulatory policies, rather than relying solely on the Federal Reserve's monetary measures. His insights highlight the complexities of managing an economy under significant inflationary pressures and the need for coordinated policy actions.