Fed. Reserve's Raphael Bostic: I am open to all possibilities

Daniel Fowler
March 25, 2019

Today the president announced the nomination of Heritage Foundation fellow Stephen Moore to the Federal Reserve.

Moore has always been a supporter of Trump, including throughout the 2016 presidential election. The president later said in a tweet that Mr Moore is "a very respected economist" and said he has "no doubt he will be an outstanding choice". Trump wrote on Twitter on Friday.

"The Fed is sucking the oxygen out of the economy and has created an economically debilitating deflation", Moore told The New York Times recently.

Moore advised Cain on his so-called "9-9-9" tax plan in 2011, which would have replaced much of the US tax code with a flat 9 percent tax on sales transactions as well as corporate and individual income.

Powell's decision to hold rates likely has nothing to do with the President's urging, but even the speculation that the independent Fed may have bowed to pressure from the White House is worrying.

Bostic, who spent most of his speech extolling the benefits of the Fed's new "ample reserves" approach to monetary policy, took time at the end to deliver a message to markets directly about what he said was an inaccurate reading of the Fed's intention.

A spokeswoman for Republican Senator Crapo, who leads the Senate banking committee whose support is needed before a Fed governor can be appointed, declined to comment.

U.S. President Donald Trump looks on as his nominee for the chairman of the Federal Reserve Jerome Powell takes to the podium during a press event in the Rose Garden at the White House

After the Wednesday announcement, financial markets, which had already priced out any chance of a rate hike this year, began pricing in the likelihood of a rate cut next year. "I want to be somebody who can really help Chairman Powell and the others on that board to construct to the best pro-growth, stable price system that we can for this country". He said economic data for now was giving no definite signal for what the Fed's next move should be.

Also under consideration for the Fed board is Herman Cain, who ran for the 2012 Republican presidential nomination, the Bloomberg reported Thursday, citing anonymous sources.

Moore has often embraced a confrontational tone in his commentary on the Fed.

Moore joined CNN as a contributor in early 2017. "And frankly, if we didn't have somebody that would raise interest rates and do quantitative tightening, we would have been at over 4 [percent] instead of at 3.1 [percent]".

The central bank intends to slow the reduction of its holdings of Treasury securities by reducing the cap on monthly redemptions from the current level of $30 billion to $15 billion beginning in May, according to the statement.

Along with using technical terms to mean different things than most economists, Moore in a 2014 co-authored paper argued the exact opposite of the views he embraces today, urging the Fed to pull liquidity from the economy by selling off its assets because of the risk of inflation.

IPad Mini 5: Release Date And Price Details
It's already 2019, after all, and the current design just makes it feel old, as if it were already outdated out of the box. The new iPad mini is powered by the same A12 Bionic chip inside of the iPhone XS, XS Max , and XR.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER