Trump says to nominate Stephen Moore to FED

Roman Schwartz
March 25, 2019

Moore, 59, has joined the president in criticizing the central bank, led by Chairman Jerome Powell, for raising interest rates.

The group often reach policy decisions by consensus after debating the issues. "He'll be great on the Fed".

Asked if the Fed should be cutting interest rates instead, he said was unsure. "One of the things that will be really interesting for me is to hear the case, look at their data and then help make the decision about whether we're too tight or too loose".

"It is my pleasure to announce that @StephenMoore, a very respected Economist, will be nominated to serve on the Fed Board".

Last week, Director of the National Economic Council Larry Kudlow showed Trump this op-ed, reports Bloomberg, and Trump commented that Moore should have been appointed chairman of the Federal Reserve. Trump wrote on Twitter on Friday.

"I am open to all possibilities as we aim to support sustained economic expansion, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective", Bostic said, referring to the policy-setting Federal Open Market Committee.

Moore advised Cain on his so-called "9-9-9" tax plan in 2011, which would have replaced much of the US tax code with a flat 9 percent tax on sales transactions as well as corporate and individual income. The nomination could test just how successful Powell has been in his aggressive courting of lawmakers in his first year as Fed chair.

Given his sharply partisan reputation, Moore could spark opposition among Democrats in the Senate.

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Mr Trump has gone from heckling Fed chairman Jerome Powell on Twitter to trying to give one of his allies a hand on the levers of U.S. monetary policy. And now he's appointing one of his long-time supporters to the board. He nominated four of the current five members. As a result, the Fed is not expected to raise interest rates at all this year over concerns about the slowed growth.

The comments were among the first made by a Fed policymaker since the USA central bank made an unexpectedly dovish shift on Wednesday.

An official familiar with the nomination said Moore's latest op-ed in the Wall Street Journal on the Fed is what pushed his nomination forward.

But he later added that "over time, obviously, we want to reduce that balance sheet and not have these massive amounts of debt on the Fed balance sheet".

In response to the news, Mike Fratantoni, chief economist of the Mortgage Banker's Associate, said that there were bigger takeaways from the Fed's announcement. Mr Trump discussed firing Mr Powell.

As a TV commentator, Moore has been an anti-tax conservative and fiscal hawk.

Trump in his first two years in office has been able to reshape the central bank. "He told me in a meeting last month that the Fed is preventing us from staying on a 3 to 4 percent growth path". He stressed monetary policy in a March editorial in The Wall Street Journal that estimated that Fed policies had cut real growth by as much as 1.5 percentage points in the past six months. The Feds policy rate is now set at 2.25 per cent to 2.5 per cent. "I'm going have study up" on that, he said.

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