Kudlow: Growth does not cause inflation

• Kudlow asserts that economic growth, particularly supply-side growth from business capital expenditure and industrial spending, does not inherently lead to inflation.
• He points to strong economic indicators such as soaring manufacturing profits, record-high median household income, and all-time low Hispanic and Black poverty rates, describing the current economy as a 'boom'.
• Kudlow highlights a 3.1% annual productivity rate over the last two years and 0.4% unit labor costs, suggesting 'no inflation in the guts of the economy' and advocating for a 'one and done' approach to rate hikes.

Larry Kudlow argues that economic growth does not cause inflation, emphasizing a booming economy with strong productivity and low unit labor costs. He suggests the Federal Reserve's recent quarter-point rate hike might be a 'one and done' move, contrasting with some economists' views and highlighting positive trends in manufacturing, household income, and poverty reduction.