Reckless government spending is making the RBA’s job even harder

The Motley Fool Chief Investment Officer Scott Phillips says Treasurer Jim Chalmers is “heating up the economy” as the Reserve Bank is trying to “cool things down”.

“Why are you running a deficit budget, adding stimulus to the economy? They’re literally heating up the economy, while the Reserve Bank is trying to take money out of the economy and cool things down,” Mr Phillips told News24.

“They are running at cross purposes. They are making the RBA’s job harder.

“If you’re doing that while the RBA is trying to cool demand, you're going to put pressure on prices.”