President Donald Trump on Friday tapped Stephen Moore, a conservative economic commentator and fellow critic of Federal Reserve policy under Chairman Jerome Powell, to join the US central bank's board of governors, a move that would position a Trump loyalist inside the world's most important financial institution.
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.
GoLocalProv interviewed Moore in October of 2018 when he was in Rhode Island for the Center for Freedom and Prosperity's annual luncheon.
Moore argued after the financial crisis that the Fed's efforts to stimulate growth through very low interest rates and bond buying would lead to higher inflation, something that did not happen.
Moore, a well-known and often polarizing figure in Washington political circles, served as an economic adviser to Trump during the 2016 presidential campaign. Every three months since January 2012, the Federal Reserve has sent analysts scurrying by updating its "dot plot", which has become the de facto monetary policy forecast of the USA central bank - whether the Fed wants it to be or not.
In a March editorial in The Wall Street Journal, Moore estimated that Fed rate policies had reduced inflation-adjusted economic growth by as much as 1.5 percentage points in the past six months.
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He was responding to a query on whether Jet Airways is a fit case to be referred under the Insolvency and Bankruptcy Code (IBC). Jet Airways' lenders may this week invite expressions of interest (EoI) from investors looking to acquire the ailing airline.
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 USA monetary policy. Inflation risks the Fed had perceived in previous months simply aren't materializing, Mr. Powell explained; in fact, it's having a hard time reaching its goal of 2 percent inflation.
On Wednesday, Fed policymakers signaled they may be done hiking interest rates this year, amid signs of economic slowing.
But if other economic data, including from the labor market, along with inflation readings "suggest that the economy may be overheating, then I think that I'd be comfortable to move", he said. "I really believe we can have 3 to 4 per cent growth for next five to six years".
The Wall Street Journal, citing a senior administration official, had reported earlier that Trump made an offer to Moore this week after speaking with him to compliment him on an opinion article he co-authored in the Journal.
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.
Cain defended higher interest rates in December 2017, a position that differs from the president's stance a year ago, the Bloomberg reported. "Given this news, he is no longer with the network, a CNN spokeswoman confirms".