Stephen Moore, a former senior economic adviser to President Donald Trump, told Newsmax Wednesday that 3% GDP growth in the second quarter likely won’t spur the Federal Reserve to cut interest rates as Trump has demanded.
“I think it’s going to have potentially the opposite effect,” Moore said on “Wake Up America.” “I think that the Fed is going to say, ‘Oh, the economy is doing great. We don’t need to do a rate cut.’ Here’s the problem with the Federal Reserve Board, and this is something that [businessman] Steve Forbes and I have been saying for a long time: The Fed doesn’t like economic growth.”
He added, “They think economic growth causes inflation, which is crazy because when the economy produces more apples, the price of apples falls — it doesn’t rise. So I think, if anything, paradoxically, that this will actually mean that [Fed Chair] Jerome Powell will probably not cut interest rates.”
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