On Wednesday’s broadcast of the Fox Business Network’s “The Bottom Line,” former Trump Economic Adviser Stephen Moore stated that he would have voted to increase interest rates by a quarter of a point.
Moore began by saying, “[I]f I were on the Federal Reserve Board today, I would reluctantly have gone along with this quarter-point rate increase. And, look, nobody likes rate increases. We know that. But the number one job of the Fed, it’s really, I believe, their only job, is to keep prices stable and the dollar stable. And we have — we’re running at 3.5% inflation. We can’t allow that to continue. So, what the chairman is trying to do is take some of the money out of the economy, because, when you have too many dollars chasing — [purchasing too little goods], you’re going to have higher prices.”
He added that Federal Reserve Chair Kevin Warsh “was incredibly optimistic about the U.S. economy. This is a great economy…other than the rise in the oil price, everything else is going amazing.”
Moore further stated that Warsh “said, I’m the Fed Chair, there’s nothing I can do about bringing down oil prices. But he can bring the overall price level down from 3.5%. So, hopefully, this will not be followed by more rate hikes, and hopefully, we will get that energy situation resolved. And when it does, I guarantee you, you think we’ve got a boom right now, get ready to see the greatest boom ever.”
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