On Friday’s broadcast of the Fox Business Network’s “The Bottom Line,” former Trump Economic Adviser Stephen Moore stated that now might not be the best time to lower rates because of a potential bump in inflation due to a spike in the price of oil and said that “if I were Trump and the White House and the Fed, I’d be worried a little bit more right now about let’s not let another dose of inflation hit the economy right now.”
Moore said, “I want to get to this issue of the Federal Reserve Board cutting rates. I think this, probably, might not be the best time to be lowering rates. You just had that discussion about rising oil prices. The big worry right now is that we’re going to see a recurrence of — we’ll certainly see a bump in inflation when the oil price goes up, because that’s an ingredient in everything that we produce. So, if I were Trump and the White House and the Fed, I’d be worried a little bit more right now about let’s not let another dose of inflation hit the economy right now.”
He added that it’s a “good point” to say that the price shock will reduce growth.
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