Larry Kudlow says Fed's models are 'highly flawed,' but central bank is moving in right direction

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“The markets are predicting another Fed rate cut and I agree with that.” Here’s what National Economic Council Director Larry Kudlow said earlier today that he sees for the U.S. economic outlook.

Larry Kudlow, President Donald Trump's top economic advisor, said Thursday the Federal Reserve's economic models are "highly flawed," but the central bank is finally moving in the right direction.

"I don't want to get into a lot of Fed bashing. They do the best they can. Their models are highly flawed," Kudlow told CNBC from the White House lawn. "The 'deep state' board staff, of course, has not been helpful — oops, did I say that?"rump and Kudlow have long attacked the Fed and its leadership for what they considered restrictive monetary policy.

That looser policy, Kudlow said, has finally started to help move the economy in the right direction. "I will defend what's going on in the domestic economy because despite a very severe Fed tightening last year — maybe we're coming out of that now — nonetheless lower taxes and deregulation and opening up energy: We're still plugging along," Kudlow said of the broader U.S. economy.

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