Trump nominates right-wing talking head Stephen Moore to the US Federal Reserve Board of Governors..

Did not know about this development.

Apparently Donald Trump has nominated Stephen Moore to Fed. Brad DeLong comments:

Over the course of his presidency, Donald Trump has consistently prized sycophancy above expertise in his selection of advisers and political appointees. But by nominating the right-wing talking head Stephen Moore to the US Federal Reserve Board of Governors, Trump is taking his war on expertise to a new level.

DeLong says Moore has been highly inconsistent in his views:

 

 In December 2015, the right-wing commentator Stephen Moore, US President Donald Trump’s pick to fill a vacancy on the US Federal Reserve Board of Governors, savagely attacked then-Fed Chair Janet Yellen and her predecessor, Ben Bernanke, for maintaining loose monetary policies in the years following the “Great Recession.”

Moore, who is not a professional economist, investors had “become hyper-dependent” on the Fed’s “zero-interest-rate policy … just as an addict craves crack cocaine.” This “money creation,” he surmised, had yielded “nada” in terms of “helping juice the economy, creating jobs, or giving the American worker a pay raise.” Worse, the United States had already “tried this before – twice – and both times the story ended badly with a pop of the bubble … in 1999-2000 and … in 2008-09.” The lesson, he concluded, is that, “Micromanaging the economy through the lever of money creation at the grand fiefdom within the Fed doesn’t work.”

Or does it? Moore himself is probably not the most reliable judge. On December 26, 2018, he savagely attacked Yellen’s successor, Jerome Powell, for raising interest rates to unwind the very approach that he had condemned three years earlier. “If you cut engine power too far on a jetliner,” he warned, “it will stall and drop out of the sky.” Moore complained that after having “risen by 382 points on hopes that the Fed would listen to Trump and stop cutting power,” the Dow Jones Industrial Average had “plunged by 895 points” on the news of another interest-rate hike. This, he concluded, was evidence that “the Fed’s monetary policy has come unhinged.”

Moore called on Powell to “do the honorable thing … and resign.” But, failing that, he hoped that Trump would simply fire the Fed chair. “The law says he can replace the Federal Reserve Chairman for cause,” Moore observed in an interview that same week. “Well, the cause is that he’s wrecking our economy.”

If Moore’s approach to legal reasoning seems deficient, one must wonder how he would approach monetary policymaking. Judging by his own statements, a three-month Treasury rate of 0.26% driving a ten-year rate of 2.3% was far too low in December 2015, whereas a three-month rate of 2.42% driving a ten-year rate of 2.55% is far too high today.

….

That comes as no surprise. Throughout his career as a partisan talking head, Moore’s economic analysis has never had any basis in empirical reality. To the contrary, he has repeatedly shown that he will say whatever needs to be said to please his political master.

Needless to say, Moore is wholly unfit to serve in the office to which he is being nominated. He has absolutely no business overseeing US monetary policy. The same is true of any president who would appoint him and any senator who would vote to confirm him.

Interesting times…

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