Former Trump economic adviser warns Fed Chairman Jerome Powell that will cause market disruption
Stephen Moore, a senior visiting fellow at the Heritage Foundation, talks with Fox News Digital on how President Donald Trump’s firing of Fed Chairman Jerome Powell will cause “more disruption” in the market.
As President Donald Trump doubles his opposition to Federal Reserve Speaker Jerome Powell, one of the president’s former economic advisers advised him to finish the rest of his term.
“We’ve changed our opinion about this because we have such a fierce stock market right now, and I think we’re firing him. The market will react negatively to it,” Stephen Moore, an economist at the Heritage Foundation and former Trump economic adviser, told Fox News Digital.
“It’s going to be more confusing when we don’t need it,” he continued. “So, ‘Don’t worry, he will be gone in a year, and we have very good monetary policy’ and get on him. ”
U.S. stock futures showed signs of a recovery, but the market experienced turbulence after a major index fell by more than 2% on Monday, with the US dollar falling to a multi-year low. Moore, who was thought of as a Federal Reserve Governor and thought of under Trump in 2019, wanted “We’re at the bottom right now,” but advised the central bank to go on a “straight and narrow” path.
His comments also come to the heels of Trump continuing his public criticism of the Fed chair, Call him the “major loser” They say central banks should “cut first” interest rates. The president further coined him “too late” with reference to his missed opportunity to cut interest rates.
Economist Stephen Moore is focusing on the future of FED and market volatility with Fox News Digital. (Getty Images)
“I fully agree that Jay Powell was the very poor Fed chairman and allowed inflation to rise to 9% when Biden was president. He is overtly political and I think it’s incredibly irresponsible for the Fed to attack the president the way the president did about a week ago,” Moore explained.
“So I think Trump can fire Jerome Powell, but I’ve come to the conclusion that I don’t think it’s a good idea because Jerome Powell has only one more year left. Or Steve Forbes“The economist added, “someone who really understands our financial system.”
“And now I have come to the conclusion that firing Jerome Powell would be more disruptive for the market at once (when) not needed.”
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Moore emphasized that, recalls whether the Fed should lower prices at this point, focusing on inflation first and foremost.
“We all know what happened when household goods prices rose 25% during the Biden era. It was just a murderer for the family. So whether they should cut interest rates right now or not, the last thing we want to see is the big new game like under Joe Biden.
Inflation rose last month A slower pace than expected, However, it was well above the Federal Reserve 2% target as central banks prepare to monitor the impact of tariffs on consumer prices in weeks and months.
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“The current problem with our economy is only partly financial. The bigger problem is that these trade disputes must be resolved actively. We must complete the tax cuts,” Moore said. Trump’s tax cut approval By Memorial Day, we will “see the stock market come back to life.”
“What about deregulation? Can we get all these stupid regulations from behind our business and make them more cost-effective? How about producing millions of barrels of oil? It’s going to lower the price of gasoline with a pump,” Moore pointed out. “So there’s so much that Trump can do independently of what the Fed really is doing to really inspire this economy with a new life.”
Eric Revell from Fox Business contributed to this report.