Steve Moore, top Trump economist. Trump has nominated for a seat on Federal Reserve Board in March 2019. Distinguished Visiting Fellow, Project for Economic Growth, Heritage Foundation. Co-authored Trump tax plan. Co-authored with Dr. Arthur Laffer: “Trumponomics”. One of Trump’s most trusted economic advisors.
John C.: Good morning America, this is The Cats Roundtable. This is John Catsimatidis. What’s going on with our country? What’s going on with your world economy? Well, we got the right guy to talk to this morning. We have Steve Moore. He was a member of the Heritage Foundation, a Chief Economist and he is Donald Trump’s pick to join the Federal Reserve.
John C.: Good morning Steve Moore, how are you?
Steve Moore: Hi John, good morning to you too. I’m doing wonderful, thank you.
John C.: Look, you’ve always been on our show. You’ve always done wonderful and hopefully you’re following in the our other friend’s, Larry Kudlow’s, footsteps. Where are we in the confirmation process?
Steve Moore: Well it’s been certainly a brutal process, John. I was talking to a reporter the other day who has covered the Federal Reserve for 30 years and he said he’s never seen anything like this in terms of the character assassination that has gone on with respect to me in terms of a Federal Reserve position. It’s almost like the Kavanaugh treatment, when Kavanaugh was up for the Supreme Court.
Steve Moore: I think what happened, John, I think it’s important for people understand that when I was first nominated, which was about a month ago from Donald Trump, and is what an honor that was to get that call from the President. After about a week, the Left kind of attacked some on my economic positions. But my economic positions are pretty sturdy and strong and I’ve been proven a lot more right than wrong when it comes to the economy. I helped Donald Trump, as you know, and as you did help Donald Trump with his economic program and it’s been a scintillating success. So the Left finally realized they weren’t going to be able to defeat me by attacking my economic ideas or my credentials.
Steve Moore: What they’ve been doing for the last two or three weeks, in a very vicious way is, attacking things I’ve said 20 years ago, opening up my divorce, looking at old Christmas letters. I mean, it’s been a scurrilous, but I’m here to tell you this, that I am not dropping out of this process and they can keep attacking my character.
Steve Moore: I’ll say one other thing, John, I’m so appreciative of the people like you and Larry Kudlow, but so many other people around the country who really just told me to press on and said they are behind me 100% and that means so much to me. So I want to do a shout out to the people said such nice things about me.
John C.: Well, they didn’t go back to grammar school days and any girls there, you know?
Steve Moore: Not yet. John, please don’t give them any ideas here. I mean, it is through in the seventh grade-
John C.: Remember the song, she was nine and you were 11.
Steve Moore: Well, I did pull her a ponytail, but John, I only did that to get her attention.
John C.: My God, I mean, I wish our country would be straightened out with that nonsense. Now, let’s talk about-
Steve Moore: Let me say one thing, John. John, if I may, just one thing. There was this article this week about, this article I’d written about, it was kind of tongue in cheek about women in sport and I want to say this, that I’m embarrassed by it. I’m embarrassed by some of the things that I said 18 years ago. They do not reflect my positions. I’m not making light of it. I mean, it was a wrongheaded thing to do and you know. I’ve probably written a thousand articles over the last 20 years, so if you wanted to find a few of them that were offensive, that might have been and so I want to apologize to people who are offended by it, because my sisters were offended by it. So I’m not saying, I’m blameless and I’m not saying I’m an angel, but I’m just saying that these kinds of things don’t have a lot to do with whether I’m qualified to be on the Federal Reserve Board and setting interest rates.
John C.: Well, you are very qualified and I think President Trump’s yelling and you’re objecting to the interest rates going up, help the economy. We talked about it in January, we talked about in February, and they almost hurt the economy by doing what they did in December.
Steve Moore: Well that’s exactly right, John. I mean, this is what I think really sets me off against the Fed was they raised those rates in December. I think everybody who follows the economy or the stock market remembers that when they made that, what I think was a catastrophic decision to raise interest rates, I think it was a week or two before Christmas, and you remember what happened, John. The stock markets fell 700 points while Powell was making the announcement and another 2000 points in the weeks following that, and I said, “There was no reason to be raising rates because there was no inflation in the system. In fact, if anything, prices have been falling.”
Steve Moore: I’ve got to say this, people like you and me who criticized the Fed, we’ve been proven to be correct. Because remember what happened, I think it was either late December, early January, the Fed had put his tail between its legs and Powell had to admit that he had made a mistake and they reversed policy. John, ever since they reversed policy the economy is flying again, so we were right and they were wrong.
John C.: Yeah, 100%. President Trump, who we both know for a long time, had the courage to stand up like no other president and tell the truth. Steve, you had the courage to stand up in December and in January and tell the truth. That’s what we need on the Federal Reserve, people to tell the truth and what they really feel. That’s what’s going to keep our country moving.
Steve Moore: Well, I want to look at the evidence and I think the evidence was pretty clear that when prices are falling, we stopped the dramatic declines in commodity price over that period, that you don’t raise interest rates and that kind of situation.
Steve Moore: What Larry Kudlow, and I, and you and Art [Lappers 00:05:48] and others believe is that when you grow the academy with tax cuts in less regulation and promoting American energy and putting good people on the Court, what do is you create more supply, more output of goods and services. I do not believe as many of the people on the Fed do, that somehow when you have an increase in output that creates inflation.
Steve Moore: I think we all believe that tax cuts creates less inflation. If you have more apples and you produce more apples, you’ve got less inflation. That’s where I will disagree with some of the Keynesians on the Federal Reserve Board who believe, number one, that if you have… They actually believe that when you have more on employed people that reduces inflation. Now John, can you even explain that one to me because I don’t understand it.
John C.: No, see what they don’t understand. The world has changed. It’s no longer in 1988. It’s 2019 and when you sell apples, you’re not only selling apples in your region, you’re not only selling apples in the country, you’re selling apples to seven continents because that’s the way our economy’s going today.
Steve Moore: That’s right.
John C.: Now, Steven-
Steve Moore: I would say that-
John C.: Yes.
Steve Moore: You are right, John. One of the things about that, you’re so right, that over the last 30 years, the world has changed so much. Trade and technology have so dramatically increased the supply of goods and services that they’ve actually helped drive down costs, which is good for everybody. I mean, it means when you come buy some things at a lower cost, you can buy more things and that raised living standards. That’s our whole philosophy that comes philosophy, that’s Donald Trump’s philosophy. That prosperity makes everybody better off and leads to a rising tide that lifts all boats. That’s what’s happening now.
Steve Moore: Did you see The Wall Street Journal, a couple of weeks ago, said the biggest wage gains in the economy under Trump had been for the lowest income workers?
John C.: Absolutely correct. Your lowest unemployment rate for the Black population in our country, the Hispanic population in our country and Asian population in our country. Unemployment is the lowest, wages are up. The economy, people feel confident but the economy, so I don’t know what the problem is?
Steve Moore: Well there is no problem. I mean that’s the point. I think you and I are with the 71% of Americans, you saw that CNN poll, 71% of Americans today rate the economy is good or great and that’s twice as high a percentage as it was under Obama, so something big has happened.
Steve Moore: Then I’ll go back to what I’ve said so many times on your show, John. You know, you’ve known Donald Trump many, many years, probably decades, it makes a big difference when you put up a guy who knows something about business and how to make a profit and how to succeed in business in the White House. Then maybe when, when Trump’s two terms are up, maybe we need to get you to run for President.
John C.: I don’t qualify. I can’t find the person they got, give me a new birth certificate that I was born here.
Steve Moore: But the serious point is you and Donald Trump, have something very much in common, while you’re both from New York, but you’re also extremely successful businessmen. You know how to make a plea to payroll, you know how the economy works. That’s I think why people took a chance on Donald Trump, don’t you? That there are people who are tired of politicians, they wanted a businessman or businesswoman who know how to run things and boy, does it make a difference.
John C.: Yeah. I think they said it’s time for change. Now, let me say something. I’ve, in the last two weeks, I’ve met with many, many bankers, many investment bankers, regular bankers, and you know what everybody agrees on, the biggest danger in our economy? The biggest danger in our economy is that by the spring of 2020 if there’s indications that any of the Democratic candidates has a chance of winning that will hurt the markets.
Steve Moore: Yeah, I couldn’t agree more. I think that’s a real danger because when you listen to what some of these Democrats are saying, “Medicare for all,” “guaranteed national income,” “reparation payments,” “A Green New Deal,” all of these things are so negative.
Steve Moore: By the way, one of their ideas, I don’t know if you’ve heard about this one, it’s called The Modern Monetary Theory. Have you heard about this one John, where they say the way you can finance all these government programs, it’s just to print money. I mean, boy that really worked well for Argentina, and Venezuela and Zimbabwe didn’t it? These are real ideas that Liberals are promoting and if people actually thought the ideas were going to come into play and you enter the White House, you would see the biggest sell off in stocks in American history and then that that is a danger.
Steve Moore: That’s why Trump has to build a big lead and he has to have this thing wrapped up six months in advance. I think he’s going to. If the economy stays strong, a year from now is this today Trump is going to win. I think a 38 to 40 state landslide reelection.
John C.: Well, one thing I have to say, Steve Moore, you are a great cheerleader for America. You deserve to be in that Federal Reserve Board and you want America to do better than everybody else and that’s so important.
Steve Moore: Yup. It’s all about prosperity, my friend. Well, I can guarantee you this, John, I’m not backing down in this fight and the President, he’s solidly behind me. I love that about him too. Donald Trump as a fighter, he doesn’t back down and so it’s going to be an interesting next couple of months because they’re going to keep attacking me, John. They’re going to say, I don’t like this group, or that group, or that and this, but it’s really, let’s just keep this on the economy and my ideas and if it’s about that, I think the Senators will almost all vote for me.
John C.: I agree with you. The stock market is at an all time high. Just about. What do you think, should we keep it going?
Steve Moore: Well John, I don’t know. I mean, I can ask you about that. It is so high. It’s been, what is it up 40% since Trump was elected? That’s a big, big gain. Look, I’m still pretty confident, I am pretty confident about the stock market, about the profitability of American companies. The tech sector is doing very well. So I’m keeping my money in the market, how about you?
John C.: I am too and I’m doubling down. Steve Moore-
Steve Moore: I love it. I love it.
John C.: Steve Moore, thank you so much for coming on the show this Sunday morning. Good luck in everything you do. America is behind you because you are behind America.
Steve Moore: Awesome. Thank you, John. Have a great Sunday.
John C.: Thank you. This is The Cats Roundtable, we’ll be right back.
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