Liz Peek joined Larry Kudlow alongside Steve Forbes to discuss the latest inflation numbers following the release of the Producer Price Index, which showed a 6 percent annual increase. While the numbers fueled widespread anxiety, Peek argued the spike is misleading — and temporary. “It’s pretty much all energy driven,” she said, noting that even the higher-than-expected services component was tied to warehousing and transportation costs with clear energy links.
Peek urged calm, comparing the inflationary pressure to a “pig in a python” — a short-term bulge caused by elevated oil prices that will work its way through the system. She reminded viewers that just a year ago, the concern was that oil prices would fall so low it would threaten domestic production. “The oil market is essentially overloaded with oil,” she said, reinforcing her view that the current spike is not structural.
On whether newly confirmed Federal Reserve Chairman Kevin Warsh should push for rate cuts, Peek was measured. “I don’t think he can possibly push for lower rates because these inflation rates have been too dramatic,” she said — but acknowledged the economic case for easing, particularly with commercial real estate borrowers squeezed by rates far above what they locked in at. She suggested Warsh’s focus on productivity growth and reducing the Fed’s balance sheet could ultimately bring rates down on a more sustainable timeline.
Peek also took aim at Republican messaging around the ongoing conflict with Iran, arguing that the White House’s ceasefire created confusion about the mission’s endgame. “It should have been from the get-go: we’re going to do whatever it takes, however long it takes, to rid the world of this regime, period,” she said, warning that mixed signals have allowed critics to claim Iran has the upper hand — a narrative she firmly rejected.
