Economic guru Larry Kudlow is urging the Federal Reserve to step lightly as it proceeds to tinker with monetary policy while the Trump administration and Congress struggles to enact corporate tax reform.

“The Fed should restrain its restraint. They should go very, very slowly here,” he told CNBC when asked about his prediction of future rate hikes this year.

“As long as the market indicators are calm and steady, I say to the Fed halt your fire and wait. Wait for corporate tax cuts,” said Kudlow, a Newsmax Finance Insider, radio talk-show host and CNBC senior contributor.

“More people working more hours does not cause inflation. That's a good thing, not a bad thing. Prosperity does not cause inflation,” said Kudlow, who served as the Trump campaign's senior economic adviser.

“Monetary policy affects inflation. If the Fed is creating too much money, you'll see it in a crashing dollar, in a soaring gold price, in soaring commodities, none of which do we see, that means this is all fine. Here's the opening to the Fed. I want them to normalize,” said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

“By the way, the Congress must not go home in August they must stay and give me a business tax cut,” said the radio host of "The Larry Kudlow Show" and author of "JFK and the Reagan Revolution: A Secret History of American Prosperity," written with Brian Domitrovic and published by Portfolio.

(Newsmax wires services contributed to this report).