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Trump reportedly wants to put Stephen Moore on the Fed, which Moore says should loosen monetary policy because the Fed policy is causing "deflation." We do NOT actually have deflation right now.
Funnily enough, when we DID have deflation -- during the depths of the financial crisis -- he argued for tighter monetary policy, suggesting that the Fed was about to stoke hyperinflation.
Of course, a Democrat was in the White House then. foxnews.com/story/glenn-be…
Of course, a Democrat was in the White House then. foxnews.com/story/glenn-be…
When pressed about what "deflation" he sees right now, Moore points to commodity prices (including soybeans, whose prices plummeted because China stopped buying them thanks to the trade war).
One time when I was on CNN with him, he claimed the "Volcker Rule" required setting interest rates according to commodity prices. That is...not what the Volcker Rule is. Watching this clip, starting around 07:59: mediaite.com/tv/cnn-panel-e…
Moore has also explicitly urged Trump to "fire" Fed chair Powell for not doing Trump's bidding on interest rates. realclearpolitics.com/video/2018/12/…
Not only that: Moore has urged Trump to fire *everyone* at the Fed for raising interest rates.
None of this bodes well for preservation of central bank independence if Moore gets a Fed seat.
Moore often scaremongers about the risk of turning into Venezuela; but putting politicians or their political minions in charge of the printing press is the swiftest way to get there.
Moore often scaremongers about the risk of turning into Venezuela; but putting politicians or their political minions in charge of the printing press is the swiftest way to get there.
