One of the top economists on the Trump team, Stephen Moore, discussed the US economy and the recent decline in US markets on FOX Business. Moore agrees with President Trump that the recent interest rate increases by ‘The FED’ have put the markets in a tailspin. In addition, these increases are costing US taxpayers trillions.
Moore was on FOX Business yesterday and he again stated that the Fed has overdone it by increasing interest rates. There is no evidence that the US is facing inflation right now and therefore the Fed should not be increasing rates –
Moore is right. The Fed’s actions to increase interest rates have stalled the stock market and are costing US tax payers trillions in current and future debt payments. The Fed provided former President Obama the most generous interest rate package ever. Rates under Obama remained at 0% most of his seven years in office. In late 2015, the Fed raised rates 0.25% but this was for only one year and the only time the rates were raised up to the 2016 election.
After President Trump won the election in 2016, the Fed started a steady program of raising interest rates. Rates were increased seven times by the Fed since the 2016 election to their current 2%.
The last rate increase in September and the Fed’s consistent pledge to raise rates effectively killed the market bull run two months ago. This resulted in billions removed from the market in gains year-to-date costing US taxpayers billions in their 401k’s.
In addition, the Fed Funds interest rate increases result in raising interest payments on the massive debt that President Trump incurred from President Obama. A 1% increase in rates results in an additional $200 billion annual interest rate payment for the US government and US taxpayers. A 2% increase results in an additional $400 billion in annual interest payments for the US tax payer to cough up.
This is not the first time Moore reflected on the Fed’s market killing actions. In an exclusive Gateway Pundit interview late last month, Moore shared the following:
A Big Big Rally is Coming
Earnings are really good from companies. They’re doing really well. I think that stocks are under priced right now. We’re going to see a big, big rally as this economic expansion continues. There’s an old saying, buy low sell high. We need to buy….Now’s a good time to be buying.
I want the prices to be stable and I’m not a Fed basher. But I think there is no real evidence that the interest rates are too low. I mean the inflation rate is tame and the price of commodities have been stable so I don’t see an overriding case for raising rates and I think Trump has point there.
About the President
Trump always seems to be upbeat about things. No matter how he gets beaten up by the press, he’s always very full of optimism. He reminds me of Reagan that way. He has a, you know, he just believes in the American spirit, in the American worker and [American] companies and thinks that if you just get government out of the way, that this economy will flourish and he’s right about that.
I expect it [4th Quarter GDP] will be around 3% and that will give us for the year of about 3.5% growth and that’s way, way above anything we had in 8 years under Obama. So it didn’t take long for Trump to fix the economy and this is sustainable. I think we can stay on this 3.5% to 4% growth pattern for the next few years and if that happens Trump will be overwhelmingly re-elected.
[Steve’s book] it’s an amazing story about being relentless. Trump is one of the most relentless people I ever met. He never stops. He is inexhaustible and we got somebody who’s working for us who works 20 hours a day.
It ain’t done yet
It was a real privilege to work for Trump and it’s been an amazing ride and it ain’t done yet. As Trump said to me the other day when I saw him in the Rose Garden at the White House, he said, “Steve, you ain’t seen nothing yet.”
Listen to 15 minute interview below –
In his new book, TRUMPONOMICS – Inside the America First Plan to Get Our Economy Back on Track, Moore provides not only numbers but personal stories from his meetings with candidate and then President Trump of the Trump economic miracle.
You can purchase Trumponomics here.