Inflation will determine the outcome of this year's election.

0:00 Speaker 1 What is today? Steve Moore, one in a country’s leading economists and a host on WABC, Steve Moore Sunday Morning, give us, give us your evaluation of what the heck is going on in our country with the economy. Interest rates seemed to be dropping all of a sudden. They said it’s only gonna be a quarter point drop, and

0:23 all of a sudden Friday morning, they said, welcome as much as one hundred bass points.

0:30 Speaker 2 Well, well, what happened, John, of course, was that we got another lousy jobs report, very disappointing with downward revisions from previous months and kind of a lackluster report. It definitely shows the economy is slowing down and that employers are pulling back, and that’s a bad sign. I’m not saying we’re headed the recession, but it just looks like

0:52 we’re not getting the growth that we want. And so I think, you know, if you’d asked me a week ago, I would have set a quarter percent reduction and interest rates, but now maybe fifty percentage, you know, fifty basis points and who knows, maybe seventy five you said, maybe even one hundred. I doubt that, but remember the Fed raised

1:10 interest rates something like eleven times, so we haven’t had a rate cut in a long time.

1:17 Speaker 1 I even heard last week that the FED chairman says if Trump is elected, less likely there’ll be more reductions of interest. I mean, what kind of nonsense.

1:31 Speaker 2 Is ann Yeah, you know this is there. It’s no secret that Jerome Powell, the FED Chairman, is not a big fan of Donald Trump, and the feeling is mutual. But you know, the Fed is supposed to be politically neutral, job politically neutral. Now Here we are, you know, less than eight weeks from an election, and early voting starts,

1:54 you know, within a couple of weeks in a lot of states. And what you’ve got here is the FED pushing their thumb on the scale of the political situation. And for the FED chairman to say something like that is highly inappropriate. He’s basically saying, we’re going to make sure the economy does worse if Trump is elected, then

2:13 if Kamala Harris is elected. But I want to make a broader point, which is, you know, all of Wall Street is so focused on these FED interest rates, but the fact is the Fed cannot solve the problems that we face in America right now. These problems have to do with running two trillion dollar deficits. These problems have

2:32 to do with the fact that we have a major presidential candidate who wants to you know, practically double the capital gains tax, raise the tax on unrealized capital gains, wants to raise our business taxes, wants to impose price controls on the economy. These are all very negative things for growth and for employment. And I think we’ve got

2:53 to solve the problem of overregulation, over taxation, and over spending in Washington if we want to go out of this rut.

3:03 Speaker 1 Well, that is completely understood. Anything going on in any particular industry that you want.

3:10 Speaker 2 To talk about, Yeah, I’m worried about our manufacturing industry, Sean, I don’t know if you are. I know you’ve got your finger on the pulse of the economy as well. But you know manufacturing is in the mini recession right now already. You know they’re pulling back that we lost jobs in manufacturing again. If you look at the manufacturing

3:29 output index, it’s been falling. So we want to make things in America, and that worries me a lot. The other thing is the jobs report once again showed that one of the biggest growth in the economy and in terms of employment was government government and healthcare. There we go again. And you know, when you’ve got a federal

3:47 government that’s losing two trillion dollars a year in cities and states and a lot of fiscal stress, John, why do they keep hiring more workers?

3:55 Speaker 1 Now? In addition, I understand I saw that some statistics and they said that all the new jobs that were created were migrant workers in the in the amount of jobs lost not created lost were Americans.

4:16 Speaker 2 What does that mean those statistics? Yeah, I see those statistics, but look, you know, I think immigrants do come in and fill a lot of the jobs that Americans won’t do, or you know, that have traditionally been filled by immigrants.

4:28 So I’m not I’m not going to blame immigrants on this problem. I think it’s a problem that we’re just not growing as fast because we have Washington that’s turned all the dials in the direction of anti growth rather than more growth. And you know Trump. The other big event, of course, John, this week was that Donald Trump gave

4:45 a major economic speech at the New York Economic Club. I don’t know if you were at that meeting, but he I thought he was excellent. He said, look, we got to get government out of the way of our private companies. There’s too much government interference with our economy right now. And I love his idea, John, of having

5:03 a Elon Musk run a government efficiency uh commission to find where we have redundancy, where we have uh you know, fraud, where we have waste abuse, where we have all sorts of other problems with our government programs. I’m on record of saying I think we could save as much as a trillion dollars a year if we spent the money

5:27 in Washington more efficiently without jeopardizing the vital services that Americans want, you know, including their medicare and sold security and roads and our national security.

5:38 Speaker 1 Steve Moore I was at that speech, and he did. He gave a pretty good speech, and uh uh he followed my lead when uh at the previous dinner I had with him, I said to me he was saying, we’re gonna we’re going to uh expel ten million migrants.

5:57 I said to him, mister President, how about we get rid of the criminals first in the right And during his speech he did say we’re going to get rid of the criminals first, which makes more sense.

6:11 Speaker 2 Oh, I completely agree with you, John, the criminals and the people, and also the people who are in government, you know, who are collecting government benefits.

6:18 Speaker 1 But you know one more important question. The last time I was we talked about this. So a couple of months ago, eighty percent of federal workers don’t work five days a week.

6:32 Speaker 2 It’s unbelievable. Well, they are only six percent of federal workers according to a report that came out a couple of months ago. Only six percent are showing up at the office full time. So you go to these government, massive government buildings, you know that are whole, you know, block long and block wide, with thousands of offices, and

6:55 there’s nobody there. And that’s another thing. Why not sell surplus we have? Why not? Here’s another idea, John.

7:02 Speaker 1 How might if everybody comes to work every day? Yeah?

7:06 Speaker 2 I know, I mean, look, look, I tele a commute now. You know, a lot of us have changed the way we work since COVID. But come on, you go into these buildings, there’s nobody there. And by the way, most Americans don’t even know they’re not on the job. So maybe we don’t need all these federal workers Steve Boy.

7:23 Speaker 1 Thank you for the update and we’re going to catch up with you soon. And you’re on every Saturday right after Cuddler. It was a great show you had yesterday.

7:33 Speaker 2 One to three yam. It’s called More Money, Folks. Tune in every Saturday afternoon.

7:39 Speaker 1 You got it.