قالب وردپرس درنا توس
Home / US / Trump breaks again with the latest Fed pick

Trump breaks again with the latest Fed pick



Hours after Trump announced last week that he wanted to call Moore into the board of the world's most powerful central bank, the former campaign consultant went to Bloomberg Television and frankly confessed his ignorance of monetary policy.

"Honestly, I'm a bit new to this game, so I'll get a steep learning curve myself on how the Fed works and how the Federal Reserve makes its decisions," Moore said in an interview on Friday. "It's hard for me to say what my role will be there, provided I'm confirmed."

Trump's decision for Moore, a distinguished Conservative Heritage Foundation scholar, raised his eyebrows at his often colorful views of the Fed, breaking his close relationship with the President who set precedents and directly criticized the Fed's recent rate hikes Has.

In December, Moore suggested Fed Chairman Jerome Powell and other board members raise interest rates late last year. They said they should be "thrown out for economic misconduct" and go so far as to suggest Powell ̵
1; who was appointed by Trump – should step down from the role.
Moore told Bloomberg that his comment was most likely made "in trouble" and that he would be willing to work with his colleagues on the blackboard and learn from them. However, he said he continued to insist on a negative stance on the Fed's rate hike in December, calling it "a very significant mistake."

"Everyone would now admit that what they did with the interest rate hike in December – it was a very significant mistake," said Moore.

The Fed has long been independent of political collapse. More recently, Powell and other members of the Fed have kept him from addressing political attacks by Trump, who called his Fed chairmen "crazy" and "loco" to raise interest rates four times in 2018. Instead, Powell has often faded the issue down to preserve the Fed's independence and affirm the message that policymakers work in the best interest of the country.
Two nominees, Nellie Lang and Marvin Goodfriend, did not manage to penetrate the Senate last year. Lang, a former Fed economist who helped regulate rules for the post-financial crisis in 2010, was seen as a threat to easing bank regulation and eventually withdrew her name.

Independently questioned, the Democrats surveyed Goodfriend's ability to accurately predict the path of the economy during its confirmation hearing. He is still being considered by the White House for a seat on the board, White House economic adviser Larry Kudlow said in January.

Moore's nomination, which requires Senate approval, prompted immediate setbacks by former political leaders.

"Moore is totally unfit to serve in the office he's being nominated for," wrote Bradford Delong, an economic historian and former deputy secretary in the Clinton administration's treasury, in an Op-Ed published by MarketWatch. "He has absolutely no responsibility for oversight of US monetary policy, nor any president who would appoint him and any senator who would vote for his approval."

Members of the seven-member jury at the Fed are usually economists. Executives of the financial industry and regulators of banks. Moore is a former editorial member of the Wall Street Journal and anti-tax activist.

He was also an analyst for CNN, although a spokesperson on Friday said the relationship had ended.

Trump is also considering former pizza executive and presidential candidate Herman Cain for a second open seat on the Fed Board, although Cain was previously the director of the Federal Reserve Bank of Kansas City, one of the Fed's regional weapons .

In his interview, Moore attempted to play down his diverging views with the current Fed chairman, stressing that he wanted to be of assistance in boosting the country's economic growth.

"I do not want to be a disruptor," Moore said. "I want to be someone who can really help Chairman Powell and the other members of this board set up a stable pricing system that is stable for this country."

Moore added that he and Trump "think a lot alike" when it comes to economic policy. "I really believe we can achieve 3 to 4 percent growth over the next five to six years," he said.

At its last meeting in March, the Federal Reserve lowered its growth forecast for 2019 to 2.1%, suggesting that it may be worried about slowing domestic and global growth.
These estimates are in stark contrast to the Trump administration, which estimates that the US economy will grow by an average of 3% a year over the next decade, including 3.2% this year.

Trump's decision to order Moore was reportedly followed the job of a recent Wall Street Journal editorial blaming the central bank for slowing the economy while addressing Trump's policy.

"In light of the Art and the way in which Moore was selected – after Trump saw a bog that he agreed to – Trump consultants could be well advised to keep the vacancy up like a card, "Ian Katz wrote. a financial analyst for Capital Alpha Partners wrote in a message to clients. "If the boss saw an article or a TV appearance and said," Let's hire this guy for the Fed, "you would not be the one to tell Trump we're sorry, we already have all the Fed's jobs occupied." However, political analysts suggested that Moore's confirmation "would very likely be near a party line," with some senatorial votes, such as Republican Senator Paul Rand of Kentucky.

The Democrats are likely to lend Moore, a close ally of White House economic adviser Larry Kudlow, the warmth because they had previously supported higher rates under President Barack Obama.

In 2015, Moore described the Fed's "zero interest rate policy … as an addict smells of cocaine" – a position he has since reversed when Trump pushed for the Fed's efforts to mitigate its potential Inflationary pressures and keep the economy in check as it accommodates the republican tax cut and other expansionary measures.

"We think it is likely that Moore will be confirmed, but his performance in a confirmation hearing would be very important, especially with his historically different views on interest rates," wrote Brian Gardner, director of Washington Research at Keefe, Bruyette & Woods in a note to customers. "Republicans have enough seats in the Senate to support him without democratic help, and it's only a matter of losing Republican support, which would jeopardize his nomination."


Source link