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Tags: Biden Administration | stephenmoore | economic | growth | inflation | fed

Stephen Moore: 'Some Indications' Economy Is 'Running out of Steam'

Stephen Moore: 'Some Indications' Economy Is 'Running out of Steam'
Economist Stephen Moore at CPAC 2020. (Samuel Corum/Getty Images)

By    |   Sunday, 01 August 2021 01:25 PM

While a 6% growth number from the second quarter under President Joe Biden would usually be considered a strong number, former Trump economic adviser Stephen Moore provides an answer on why it fell "short of expectations."

"Is this economy running out of steam? There are some indications that it is," Moore told Sunday's "The Cats Roundtable" WABC 770 AM-N.Y. "I do believe that if Donald Trump was still president, we would've had 10% growth the second quarter [instead of 6%].

"The Biden administration is putting ankle chains on this economy with all the spending and debt and this promise of higher taxes," Moore added to host John Catsimatidis.

Inflation is near the actual growth number right now, making the true growth minimal, and Moore noted "the inflation number continues to be bad; it's not getting better, it's getting worse."

Moore warned after further Democrat tax and spend initiatives will continue the trend.

"The absolute worst thing we could do is to spend another $4 trillion and borrow $4 trillion and ultimately print $4 trillion, because that's going to make inflation worse, not better," he said.

"The problem is: Once inflation gets out of control, John, it's hard to stuff that genie back in the bottle," Moore continued. "I think Jerome Powell will learn that lesson the hard way."

Powell is the chairman of the Federal Reserve Board, which Moore was nominated to by President Donald Trump but was forced to back out amid a Democrat maximum pressure campaign.

"I would be raising holy hell if I were [on the Board]," Moore said. "I'd be saying, 'Come on! We've this zero-interest rate policy for many, many years.'

"The Fed continues to buy assets like these mortgage-backed securities. I think it's building up a little bit of a bubble right now."

Moore also criticized Republicans who are joining with Democrats on the $1 trillion infrastructure package, which was sold by Biden as a mere complementary piece to progressive Senate Democrats' $3.5 trillion human infrastructure budget plan, lamented by Moore as a "Godzilla-style spending and tax bill that the Democrats want to pass without the Republicans."

"I think it was a political and policy blunder by the 16 or 17 Republicans in the Senate," Moore said of those that voted to proceed to debate on an infrastructure bill that has not even been written. "We should be cutting our government spending now, not raising spending. I don't understand the logic of this.

"They are playing right into the hands of Joe Biden."

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While a 6% growth number from the second quarter under President Joe Biden would usually be considered a strong number, former Trump economic adviser Stephen Moore provides an answer on why it fell "short of expectations."...
stephenmoore, economic, growth, inflation, fed
421
2021-25-01
Sunday, 01 August 2021 01:25 PM
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