Published: Tue, March 26, 2019
Money | By Arnold Ball

Fed nominee Moore calls December's rate hike a 'substantial mistake'

Fed nominee Moore calls December's rate hike a 'substantial mistake'

Moore is now a visiting fellow at the Heritage Foundation and is a former Wall Street Journal editorial board member.

But to see the Fed's recent pronouncements as a "definitive signal" that the central bank will hold rates steady for the balance of the year is not accurate, Bostic said on Friday, adding that patience does not constrain the Fed's options.

The nomination, which is subject to Senate approval, would elevate someone to the Fed who has, like Trump himself, been a big critic of the central bank.

The comments were among the first made by a Fed policymaker since the US central bank made an unexpectedly dovish shift on Wednesday. The Fed chairman at the time, Ben Bernanke, and Janet Yellen, who served as Bernanke's deputy before a four-year stint as chair, saw the dot plot as a way of giving markets a look into the Fed's thinking beyond any immediate decision-making.

Before joining the conservative Heritage Foundation think tank, Moore had worked as an editorial page writer at the Wall Street Journal.

Moore served as an economic adviser to Donald Trump during the 2016 presidential campaign, helping to draft Trump's tax cut plan.

Under fire from the president, Mr Powell has tried to communicate directly to a broader audience of Americans, appearing on the CBS News programme 60 Minutes and town-hall discussions in an effort to demystify what his institution does. Further complicating things, of the 12 regional Fed presidents, only five are voting members of the FOMC in any given year.

"Trust me, Steve knows absolutely nothing about the Federal Reserve or monetary policy", Bruce Bartlett, a supply-side economist who served in the Republican administrations of Ronald Reagan and George H.W. Bush, said on Twitter.

President Trump Just Recognized the Golan Heights as Israeli Territory
Mr Netanyahu, whose Likud party is running slightly behind a new centrist party led by the former general Benny Gantz in polls... USA and Israeli officials said Wednesday they had not expected a decision until next week, when Netanyahu is to visit the U.S.

At the end of a two-day policy meeting, the Federal Open markets Committee (FOMC) said the move was meant to meet market expectations and reflected the central bank's patient approach regarding monetary policy changes.

So far this year, the Federal Reserve had been thrusting to guide the United States economy by controlling the interest rates, banks had been charging one another for immediate loans.

Moore joined CNN as a contributor in early 2017.

This approach, Moore has argued, would have prevented the Fed from raising rates as much as it has.

The Fed expects 2.1 percent growth this year compared to the 2.3 percent that was forecast in December.

The U.S. recovery then was still at a weak point, and Fed officials at the time felt rates needed to remain low to support employment and growth.

The spread between yields on three-month Treasury bills and 10-year notes fell below zero for the first time since 2007 after US manufacturing data fell short of estimates.

"I'm going have study up" on that, he said.

Like this: