Donald Trump, Stephen Steve, FED discussed on WMAL Talk


You back, see malls Burke final hour of today's get together. We're live on Saturday taking your right up until seven. And when you look at the Trump accomplishments in the Trump administration, one of the things you will point to. I is the great economy as we await GDP numbers. Of course, unemployment delayed latest unemployment numbers will be out Friday for this month of February. And you know, the stock market is had winning weeks just about every week this calendar year following a bad December overall the market's way up since Donald Trump was elected and took office. So the economy the economy the economy is doing very very well. And joining us out of talk about that and more is our friend, the one and only a Stephen Moore. He's the co author along with art Laffer of Trump mix inside the America. I plan to get our. Economy back on track. He was economic campaign adviser to Donald Trump. He's co founded the committee to unleash prosperity Heritage Foundation. Of course. And you see him on CNN other than that. He doesn't do too much. Hello, steven. How are you? Hi, Steve great to be with you, by the way, you know, the economy's good 'cause nobody in the media wants to talk about it. CNN's gone silent on the economy and the stock market, by the way, you're so right. You know, we we broke through twenty six thousand on the Dow on Friday, I believe we were right hovering right around twenty six thousand. I don't remember if it closed above that. But it's right about that number when Trump you know, what it was today. Trump was elected. Now, give me the thousand eight. Yeah. It's up forty five percent in a little over two years. That's a that's a pretty bull market, and and the other statistic, I was just I couldn't wait to tell you about was, you know, the numbers for the new unemployment insurance claims came out Thursday. The lowest number in twenty five years. And what's so interesting about that is, you know, twenty five years ago that there were the economy was smaller, lots Malo. There are fewer workers in percentage terms. This is probably the lowest unemployment number of people signing up for unemployment maybe ever, I'm gonna check that number. So don't quote me on that. But it's probably close to the lowest ever in history. People can't find a job. My favorite statistics. Steve I've mentioned this on your show before shove it, but the latest number seven point two million more jobs than people to fill them. That's never happened in America before. Yeah. That is that is amazing. Let me ask you about a couple of things. Of course, the president is going to to Vietnam to focus on Korea as the March. First Friday deadline approaches on the China trade talks, and we have had encouraging news. And then it's pulled back a little by our friend, Larry Kudlow in others. There's still some space between the two parties, I figure this. And you tell me because I want your your the deadline will be extended. There will be some kind of a preliminary paper or something and then it'll be discussed for the between. She the president of China and Trump at a at a later date after he gets back from Korea from Vietnam. Yeah. I think you've got it. Exactly. Right. Steve. You know, we got some good news yesterday. Trump sounded very positive and the press conference that he gave late yesterday afternoon where he said, we're making real progress with the Chinese this is again, this is the fight of our lifetimes know, China, we're we're in an abusive relationship with China, they're cheating. They're stealing. They're lying. You know, they are engaged in espionage against the United States. They're hacking into our computer systems, it's a bad situation. And Trump is is very deadly serious about this. It looks like China's gonna buy a forty billion. More of our products every year that's a start, you know, 'cause we by five hundred billion a year from them, Steve they buy one hundred and fifty billion from us. So they clearly have the capacity as a growing economy to buy more of our products. More of our our agricultural products are manufacturing products are high-tech Southend and all of that. And so it it looks I I'm more optimistic that we're going to deal then upper it's not done yet. And you know, this could change. So I don't want to get people to exuberant about this. But if I'm right, and we get this deal. You know, if you think the economy strong now, wait till we get a better trade deal with China that the stock market's going to go through the roof. Yeah. No. I couldn't agree more. But let me ask you about tariffs. You know, I know I know there's so much of it is nuance. And and negotiating tactics by Donald Trump. And we do get money when there are tariffs. And if he increases the tariffs will get more money and the tariffs with the EU on cars. He, you know, he he Donald Trump often likes to say, I love tariffs. I'm counting the money from the tariffs. But tell me for the to the layman doesn't overall tariffs hurt our economy as opposed to help it. Sure does. I mean terrorists are bad things. They are their taxes. They make you know products more expensive. They they tend to protect certain industries and that never works. You know, I I agree with Trump on China hard around China Trump's turned me into a high ladder lowered liner. I think he saw the the risks of of what's happening in China before anybody else does. But I disagree with him on some of his other trade policies. I think the steel terrorists have been a disaster. They've actually heard our manufacturing sector and they've heard blue collar jobs because every worker that's producing steel. We have fifty workers that use steel, you know, as as an. Input in terms of, you know, our our auto industry and others and by the way on the auto industry this so curious, Steve even the US auto companies don't want the auto tariffs because they understand look everything. That's brought in a power today. When you buy an American car, let's say you buy Honda or a BMW it's probably made in the United States. Even though it's a foreign on the car company, but the approach come in from all over the world. And when we impose these tariffs on 'cause that's the other outstanding issue. I'm that trade front is whether Trump's gonna slap that twenty five percent tariff on autos, and I hope he doesn't because I think number one it will make cars more expensive. But number two, I'm not so sure it's gonna actually help the industry very much because it'll make cars made in America more expensive, and that that hurts our international sales. Yeah. No, absolutely. All right. Let's move onto interest rates. The fed had to change a kind of heart in the minutes that were released the other day. Where most people expected several at least a couple of interest rate hikes this year two thousand nineteen now it's like they're saying that there's some things that concern them on the economy. They're gonna take a wait and see approach, and and some people are saying, maybe they won't even be a hike this year. Explain what they're doing. I wish I could explain what they're doing a lot of economic gobbledygook. That's the fad made to a catastrophically bad decisions. At the end of last year. Remember, Steve the stock market was terrible in September October November December of last year, the stock market fell by five thousand points, and that was almost exclusively because of these, you know, rate increases that the fed put in place, which were unnecessary. They were extremely unnecessary. I think it was a gigantic mistake. I remember remember what happened right after right before Christmas on December eighteenth, the fed raises interest rates Powell was giving a speech about why was to raise rates. Remember? The stock market sells sold off six hundred boys. You think they might have bought a clue that they were doing the wrong thing since then they have reversed course. And they have basically said there will not be rate increases this year, or at least that's the latest declaration. That is a very good thing. But I'm gonna tell you something Steve. And I think this is important. I think the fed is still way too tight. I think rather than raising interest rates. They should be lowering rates. There is global demand for dollars in the economy. And and so you have this huge demand for for for dollars. And at the time that the fed was raising rates, which is pulling dollars out of the economy. I think the only thing right now. Now that it looks like the trade situation of China is being saddled. The only thing that worries me is a fed that believes the higher higher economic growth and more people working causes inflation. And that is the stupidest idea, but those four hundred PHD economists over at the fed believes that when I met with the president about three weeks ago, he spent half to the meetings of railing against the fed saying we're trying because what Larry cudlow when I met with Trump, you know, three years ago out putting together economic program. You know, he said he wanted us to get the four to five percent growth. Now. I don't know what you can get five percent wrote. But I think we can get four. We're already at three point one percent. But we can't do it. Steve if every time we get more growth, the fed polls back on the money supply. And and and restraints the economy. Yeah. Yeah. No. That's absolutely true. So you believe what you were you going to say that they should actually maybe cut interest rates again if you had your way. If you look at what's happened with the last three months, consumer prices have slightly fallen and commodity prices have have dropped significantly. That's an indication. We have deflation in the economy not inflation. I mean, you show me, Steve weather's any inflation is my point is Trump is built a great economy. What is the problem here that the fed is trying to solve? Yeah. No, absolutely. We're talking to Stephen Moore, by the way, where he lives today on Saturday here on WFAN would Steve malls spur Stephen Steve right now. All right. So so so finally, let me just ask you you talk about GDP when does that next number coming out? And and what do you think realistically, we could expect an for that particular number? I'm sorry, which number the GDP. Oh that should come out. I believe this week. We're going to get a fourth quarter GDP number. I'm going to say it's coming. I mean for the full year two thousand eighteen we'll get the final number. I think it's gonna come in around three point one percent. Remember, Steve all these economists. Remember what they said two years ago? Trump can't possibly get us to three percent growth. Remember that? They also. Yeah. Well, guess what? We did it. Yeah. No absolutely one year. She's not one year and eight did Obama get a stuff three percent growth. I oh, I know that. But if it if it got to three to four percent he would claim credit for it. Just like he's claimed credit for everything. And the fed allows the economy to grow. Yeah. I think we can get the four percent growth. I really do. That would be that would be awesome. Eight Stephen always great to talk to you, my friend. I appreciate you coming on. Thank you so much have a great weekend. My friend take care. All right. You too Stephen Moore, ladies and gentlemen, and checkout. I mean, if you're a fascinating book by by in in art Laffer. And of course, you know, Stephen Larry cudlow, they were the guys on the plane with Trump. They were the guys who you know, they were his economic advisers during the as if to make the point that he is gone. We let you hear the dial tone 'cause we didn't want you to think that he was hanging on an eavesdropping. So he's a guy named Larry cudlow where where the guys driving Trump's economic policy. And and this is what this is the result. What you're seeing a day? Steve won't say that he deserves credit, but he does deserve partial credit along with Kudlow and Trump certainly, and it's Trump Manama cts inside the America. I plan to get our economy back on track. And you know. You know, if you wanna take deep state conspiracy theories right on to its logical conclusion, you could say even though the fed chief is appointed by Trump. You could say that, you know, hey, the fed may be looking to undermine the economic success in the economic growth of this country. I don't go so far I have no proof of that. But I just have to tell you. And this isn't an indictment of the fed so much as it is an indictment of where we are as a nation. Nothing would surprise me. If you if it was determined later on someone wrote a book or someone had to recording whatever whatever I'm not again. I don't want to impune the integrity of these people because I'm not saying this specifically, but I'm just so it suffices to say nothing. Nothing would.

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