On Friday’s broadcast of Newsmax TV’s “Carl Higbie Frontline,” former Trump Economic Adviser Stephen Moore said that he wants to see lower interest rates, but getting that primarily depends on cutting government spending, not actions from the Federal Reserve.
Moore said, “[L]ook, we both agree that we want to see lower interest rates, but the Fed doesn’t really control interest rates, Carl. This is a myth. The Fed can lower those short-term rates. But what happened the last time they cut short-term rates? The mortgage rates went up. Because I’m going to make this very simple to you, if you think inflation’s going to be 6 or 7% over the next 20 years, are you going to borrow — lend me money at 4%? No.”
He continued, “So, we’ve got to get this spending under control, bring the debt down, and that will relieve some of the pressure on the U.S. economy.”
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