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Stephen Moore: Fed Rate Hike Only Comes After Other Tactics Failed

By    |   Friday, 18 December 2015 10:58 AM

Newsmax Finance Insider Stephen Moore, the chief economist for the Heritage Foundation, told Newsmax TV that the Federal Reserve's first rate hike in nearly a decade comes after the central bank's tactics failed to really help the economy.

"My feeling is that it was time for the Fed to get off this zero interest rate policy because we've been on it for seven years," he told "Newsmax Prime."

The Fed on Wednesday lifted its key interest rate by a quarter point to a range of 0.25 to 0.5 percent, up from near zero for the first time since December 2008.

"It was supposed to be this wonderful stimulus to the economy just like the stimulus spending plan was going to create all these jobs and it just didn't work. It was a failure and so what we've basically seen is a really stagnant economy and when you ask if the economy is strong enough? No, it's not a strong economy," he said.

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"We should be doing much better. We've been growing at 2 percent. We should be growing at 4 percent as we did under Reagan and even under Clinton," he said.

"We're not growing fast enough and that we're not creating enough good paying jobs, those are not primarily a result of bad monetary policy and a tax system that is completely broken," he said.

The biggest hurdles for economic growth are "taxes that have been going through the roof, a regulatory structure that is strangling our business, healthcare," he said.

"We're not going to see a big improvement in the economy until we fix those things and it's probably going to require a new president for that to happen."

But between the nation's proposed $1.1 trillion spending bill and the rate hike, where does our nation stand economically and financially?

"Economics 101 today: printing money does not create jobs and having the government spend money does not create jobs," he said. "We got to get our debts under control, we got to have a sound monetary policy and then we have to fix our tax code, we got to get rid of some of these regulations," he said.

"When I talked to businessmen and women around the country and I ask them 'Why aren't you investing the way that normally businesses would do in a recovery?' and they always point to two things: regulations and taxes. These things have a very negative effect on our employers around this country."

(Newsmax wire services contributed to this report).

Stephen Moore is a distinguished visiting fellow at The Heritage Foundation, economics contributor to FreedomWorks and author of "Who's the Fairest of Them All?" To find out more about Stephen Moore and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com. To read more Stephen Moore — Click Here Now.

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Economics 101 today: printing money does not create jobs and having the government spend money does not create jobs.
fed, rate hike, tax, economy
Friday, 18 December 2015 10:58 AM
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