Washington (CNN) National Economic Council director Larry Kudlow gave "high marks" to an unlikely figure during an interview with Fox News on Thursday: New York Democratic Rep. Alexandria Ocasio-Cortez.

Kudlow praised the liberal hero for challenging Federal Reserve Board of Governors Chairman Jay Powell on the Phillips Curve during a congressional hearing. The Phillips Curve is a long-held economic theory which suggests that low unemployment pushes wages up faster, which in turn accelerates inflation.

Ocasio-Cortez said the long-held theory "is no longer describing what is happening in today's economy," and Powell agreed.

Kudlow gave Ocasio-Cortez a "hats off to Ms. AOC" for her question, saying she "kind of nailed that."

"I want to note in the hearings yesterday with Fed Chairman Jay Powell, it was Ms. AOC asked him about the Phillips Curve. Why is rising growth and employment and low unemployment bad? Why does that cause inflation and higher interest rates? And Jay Powell said, 'Well you're right. That thing hasn't worked in decades.' Now, I got to give her high marks for that. She got that out of chairman," Kudlow said.

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