When growth comes from productivity, inflation FALLS: Economist

• Donald Trump emphasizes that 'proper growth can fight inflation,' contrasting with conventional economic views.
• Supply-side policies (tax reform, deregulation, energy) are highlighted as drivers of productivity and increased capacity, leading to lower prices and improved economic well-being.
• A critique of the Federal Reserve's traditional economic models, particularly the Phillips Curve, which assumes an inherent trade-off between growth and inflation, is presented.
• The conversation suggests a preference for a Fed chairman, such as Kevin Warsh or Kevin Hassett, who would align with a pro-growth, supply-side philosophy and promote diversity of economic thought at the Fed.

The discussion centers on former President Trump's assertion that proper growth can fight inflation, a message delivered at the World Economic Forum. Economists argue that supply-side policies, like tax reform and deregulation, foster productivity-driven growth, which naturally lowers inflation. They advocate for a Federal Reserve chairman who understands and supports this non-inflationary growth model, challenging traditional Fed thinking.