Listen: Federal Reserve, President Trump And Heritage Foundation discussed on Bloomberg Best
"Stephen Moore is the co founder of the club for growth, a distinguished visiting fellow at the Heritage Foundation and co author of Trump annex inside the America I plan to revive our economy. And now Joan he's the man President Trump said should be the next governor of the Federal Reserve he sat down with Bloomberg's Tom Keene and Jonathan Farrow sorta surprised by the by the resistance by the left to my nomination. But it's going fine. I'm well. I'm doing well with the senators, and so this is going to happen. I do have some controversial views in terms of what I wanna do at the fed. I feel very strongly about more transparency at the fed. I think there should be more openness than sunlight about how the fed operates. I do believe that maybe this is controversial. Maybe it's not I believe as as Donald Trump believes and Larry cudlow believes that growth does not cause inflation. I'll say that again growth does not cause inflation. I think there are too many people at the fed and to many people find in the financial industry who believed that every time we get growth, sometimes we have to pull that back because it causes inflation. If you have an increase in goods and services prices fall, they don't rise. We'll gets the economics in the process quickly. Yeah. When does it become official? I have to go through an FBI clearance. And I have to also do a financial disclosure that could take I don't know, exactly. How long it'll take for that to be completed maybe a month. And so the way this process works is that you're formally nominated once you've gone through. Clarence. So what was unusual is that that that this story kind of got out before a usually you go through the clearance. First and then be. So let us begin with the defense of supply side theory. Right. Many that push against it in much of what they say is. We don't have tangible evidence that growth doesn't harm fiscal trajectories. How do we get growth and a better debt and a better deficit? Well, look, I mean supply side, I'm a supply sider, I believe the way to grow the economy is increased the supply of goods and services and increase employment and the way I mean is there ever been a vindication of suffice ID comics than the last two years when all the liberal remember when Trump was elected all the his critics said he was going to cause a second great depression. Remember, this is going to be the you know, the worst financial meltdown history. If he was elected, and of course, just the opposite has happened. When we now have markets up some forty percent since he was elected. We have a very strong economy. And I think the tax cuts have totally proud of the tax cuts. I mean is there ever been a policy? That's. Worked so rapidly. And so is the tax. I wanna talk Steve more about the expansion of the debt and deficit isn't the price of a supply side, Kudlow more theory, it some point all of the eighties that debt and deficit catches up with us. Well, look, I think what's most important is that how I am a deficit hawk by. You you go back the last twenty five years. I don't think. Well, let me make this point. I mean, he's a very important one. I don't think you can. I challenge you to find anyone anyone in Washington who is wanted to cut government spending more than me. I mean, really, I don't think you since I was twenty five years old. I came this. I was the youngest winners Cutty. Everyone knows we have to cut government spending both parties want us way too much money. You will enter the fed with the reality of a vector on the twin deficits that take us back to middle. Reagan. Can we sustain that was supply side theory? If the economy is growing, the most important thing about the dentist make sure the economy is growing faster than the data. I think you all agree on that. And if we stayed on the course that we had been on for the previous ten years where the economy was growing at one point eight one point nine percent, that's not sustainable the data's going to cycle out of control. We have increased the growth rate from one point five percent in Obama's last year to over three percent now. I mean, that's that's an incredible record in in two years. So you got that academy growing at three percent on a sustainable level. You're going to level off the sheer to UP overtime. The debt is going to be reduced appears percent of GDP, but we do have to cut government spending. There's no doubt about it. There's no argument there governme-. Spending is way way too high. We have to do something about the entitlements. We have to do something about bringing down the domestic spending and even the military. I think we spend too much money frankly on the military. We have to cut everyone knows that the problem. I mean, even you know, it's not a revenue problem. Right. We have more revenues in two thousand eighteen than any time in history. It is a spending problem. We'll stay a lot of people listening. Right. I mean, do not do people listening to this program right now. Echinacea his seeming three percent. It's a story of yesteryear. It is being gone. Three percent is no longer sustainable. Why that we see from the economists that join us on this program? Have two handles they wrong. Why you've same people said. I mean, I I don't know who you're talking to but all the people at the New York Times and the Washington Post, and so on are the same people who two years ago back and read what they said, I'm not saying that we are going to get what I'm saying is we've created an incredibly pro growth pro business atmosphere with the reduction in tax rates right with the reduction and regulation with the pro America energy, policies and other pro business policies we've got now. My problem has been I do think over the last four months or so the fed has been too tight. They've looked at this economic growth, and they've they've had to pull it back. And my point is growth does not inflation. That was Stephen Moore. Heritage Foundation distinguished visiting fellow and co author of Trump nominees inside the America I."