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Stephen Moore sees no reason for a Fed rate cut of 1%, Trump does not agree

Stephen Moore

Anjali Sundaram | CNBC

Potential Federal Reserve candidate Stephen Moore disapproves of President Donald Trump's call for the central bank to cut interest rates sharply.

"I'm not so sure that I agree with the White House that we should cut interest rates by a full percentage point," Moore told Bloomberg News on Thursday. "I just do not see the case."

Moore said two days after Trump had called for a 1

% cut in the Fed's overnight rate and called for more quantitative easing on what measures he is taking. The central bank should stimulate the economy after the financial crisis.

In a series of tweets, Trump said the US economy will rise "like a rocket" if the Fed eases monetary policy.

Trump calls for lower interest rates According to the Department of Commerce, the US economy posted annualized growth of 3.2% in the first quarter. This was the best start in a year since 2015.

On Wednesday, the Fed kept interest rates unchanged, citing weak inflation. However, Fed Chairman Jerome Powell said the low inflationary pressure could only be "temporary", suggesting inflation.

The Fed raised interest rates four times in 2018. After the last rate hike, there was a massive sale of shares and then a sharp rebound.

Moore added that he could "work for the lifting of the rate hike in December" as the economy slowed down at that time.

Trump does not yet have Moore's name as Fed governor The potential nomination is in trouble due to controversial comments from Moore's past.

Despite growing opposition from both parties, Moore said he would not withdraw his name, as Hermain Cain recently had to do so after controversy and suggestion he did not have sufficient support from the Republicans to come through a hearing for affirmation.

"I'm not taking off," Moore told the Wall Street Journal in a report released Thursday morning. Moore said he spoke with a White House official who encouraged him to continue the process.


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