US Economy Solid Despite Fed Policies Hindering Growth

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President Donald Trump said on Friday he has picked Stephen Moore, an economic commentator affiliated with a conservative think tank, for a seat on the Federal Reserve's Board of Governors.

Moore founded the Club For Growth, a conservative group that funded an ad blitz in 2016 meant to stop Trump from winning the Republican presidential nomination.

As a Fed governor, a position that requires Senate confirmation, Mr Moore would be in a position to espouse his and the White House's view that the economy can grow much faster without generating inflation.

Moore has frequently praised the administration on television and co-authored the 2018 book "Trumponomics" with Art Laffer, who pioneered the Republican doctrine that lower tax rates would accelerate economic growth in ways that could minimize debt.

The Fed has become increasingly anxious about meeting its 2 percent inflation target and skeptical that the Trump administration's tax cuts and deregulation will unleash faster economic growth.

Kevin Hassett, Trump's top economic adviser, told the Post that the analysis was wrong because the administration was able to achieve 3.1 percent growth over the a year ago.

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Under the threat of constant second-guessing by the president, and potentially soon working with a Trump cheerleader inside the building, Fed officials may find it increasingly hard to stay focused on keeping the institution at a distance from politics.

The dot plot was invented in late 2011, at a time when Fed officials were considering how to prepare markets for the shift they hoped to make away from the unprecedented array of monetary support measures they'd put in place after the financial crisis.

Moore is a visiting fellow for Project for Economic Growth at The Heritage Foundation.

"His policies appear to be going the wrong way", Sumner said.

'I don't care if I influenced or not. But we would be over four [percent] if they didn't do all of the interest rate hikes, and they tightened. "He hasn't gotten a thing right in twenty years, (check the record), and the Senate should not confirm him". They did $50 billion a month. He also was an adviser to Trump's presidential campaign.

Cain defended higher interest rates in December 2017, a position that differs from the president's stance past year, the Bloomberg reported. The Fed chairman at the time, Ben Bernanke, and Janet Yellen, who served as Bernanke's deputy before a four-year stint as chair, saw the dot plot as a way of giving markets a look into the Fed's thinking beyond any immediate decision-making. "Given this news, he is no longer with the network, a CNN spokeswoman confirms".

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