Stephen Moore sounds off for first time since withdrawing nomination

Channel: Fox Business
Published: 05/03/2019 04:57 PM

Heritage Foundation Distinguished Fellow Stephen Moore on the economy, Federal Reserve policy, and his decision to withdraw his name from consideration for the Federal Reserve board. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms tha...

We'Ve got an important guest with us now. His name is steve. Moore, steve. Welcome back to the program good to see you young man, i want to ask you first of all: do you think we need a rate cut right now? Well, first of all, this idea that somehow how high the growth rate is should affect you know, and the decision to change rates is wrongheaded. You know i'm a believer we could get. You know thre ...
to four percent: real growth with very little inflation. I'Ve. My whole mantra, since you know that trump tapped me for this, and i'm not gon na, be in the seat now, but it was. You know that the growth doesnot cause inflation trump believes that larry kudlow believes it and i believe it and - and so you know when i look at the the situation right now, i'll stick with what i've said for the last several months. The december rate increase was very wrong. Headed the fed did the right thing by by the way in reversing course back in january, but they have not stewart reversed the rate increase. You know they announced they wouldn't raise rates this year, but i think they should go back to that where they were prior to december, which would mean i would favor a quarter point reduction in rates.

I think that's what the fed should have done this weeki. Just don't see any inflation out there. Maybe short you! You guys see something out there that i don't know, but i just don't see it there below the fed has been below their inflation target now for four straight months. My position on this is: it will be nice to have some ammunition, a couple of bullets that we could fire if we need to fire them and the economy slows down like stewart. Okay, this idea you're sounding like a kind of phillips curve, conventional wisdom guy. That'S by the way, one of the reasons they didn't want me on the factors, because i'm not conventional wisdom. I do think out of the box on this butbut. No look! I never understood this logic. You know going back to the summer of last year. Remember we hit 4 % growth, there was no inflation, we had rising wages, low unemployment in the most beautiful picture you could possibly imagine for the economy and all the fed says start saying. Well, maybe we should raise rates so that you know if the economy, falters, we can lower them later. At that logic, you know to me makes no sense totally should be looking at what's happening at inflation, we're below the inflation target.

That means we should heart rate. So we get back to where we want to be, and by the way, if we do that, ithink it'll give a nice lift to the markets and in the real economy, but my god stuart, look at the evidence over the last two days. First, we get a 3. 2 percent growth number. Then we get the productivity numbers yesterday, which were off the charts. Today we get this job picture, which is absolutely beautiful. There is nothing to complain about in this economy. I want to hear what these democrats and liberals who said that trump was going to destroy the economy. I mean what do they say and now stuart yeah i'd like to know that and by the way, that's the first time i've ever been accused of using conventional wisdom, but that's the storywith you let's deal with this. You wrote this headline in the wall street journal today. Here it is quote my brush with personal destruction. As you write, you've been taken, you withdrawn yourself from consideration on the federal reserve board.

It is my question and it's really your question to what has your divorce? Your personal life, what's that got to do with your take on monetary policy, that's the question that you raised in that article answer: it look, i'm bummed out, i mean i'm really disappointed and i'm not a quitter. I hate quitting donald trump is not a quitter either. He didn't want me to quit, and you know it just became so evident that thati was never gon na be able to get through this because they, you know they were looking at things. I wrote 2025 years ago i have 2000 articles. I'Ve written i've been on. You know 500, you know speeches i've given and they're picking out snippets and saying he doesn't like women. He doesn't like this group that group, you know and look i'm a flamboyant person, so you know sometimes i get a little carried away and the things i say and if i've insulted people i've apologized about that. But you know what really has has bummed me out about this whole thing is when the president asked me to do this, i thought this would be agreat platform. You know to talk about what we're talking about, what what? How do you, how should the fed operate? How do we keep inflation under control? How do we grow the economy it? The left didn't want to talk about that. They wanted to talk about my divorce. They wanted to talk about things i wrote 20 years ago and that's that's unfortunate because, my goodness i mean i'm very proud of the role i've helped play with donald trump in getting to the place we are now. As i said earlier, none of my critics.

You know from paul krugman of the washington post editorial board. However people none of them said this was possible. Remember whentrump said we could get to three to four percent growth. They laughed at him. They said we have secular stagnation. We can't possibly do that. You know how is he gon na do with the magic wand, below maybe trump says, imagine a situation. I got ta wrap this up. Cuz there's a hard break coming, but i rue the day when we take people off the table for a responsible job because of something that they have said or written many many years ago, which has nothing to do with the job they were filled. Mr. moore, thank you totally agree and i hope you can come back real soon. You'Ll be welcome here.

Thank you. Mr. moore. Thank youokay thanks.

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