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President Trump's effort to reshape the Federal Reserve and accelerate economic growth hit a setback Tuesday as multiple Republican Senators criticized or outright rejected the president's plans to nominate political supporter Stephen Moore.
Sen. Joni Ernst (R-Iowa) said she was "very unlikely" to vote for Moore. Several others raised big questions about his potential appointment, including Trump ally Sen. Lindsey O. Graham (R-S.C.), Who called Moore a "problematic" nominee.
Ernst said she would not think Moore would be confirmed, adding that "several" senators agree with her on the world's economy. A simple majority is needed to confirm Moore to the Fed board, but with Democrats controlling 47 Senate seats, he can lose precious few Republicans.
At least seven GOP senators have taken issue with Moore's provocative past columns and statements that have come to light as a potential Fed nominee in March.
Moore's quickly declining chances of winning the Senate approval show the risks of a president determined to reshape the government by whatever means.
Trump has grown angry with the Fed as he has complained that Fed Chair Jerome H. Powell, whom he picked up, has raised interest rates too quickly. Trump argues that those decisions have a negative impact on the likelihood of success, and that they are likely to be affected by their chances of success.
"The president stands behind him," Kellyanne Conway, counselor to the president, said of Moore on Tuesday, April 30, 2019. Here, Conway speaks to the media outside the White House. (Stefani Reynolds / Bloomberg News)
Amid that frustration, Trump turned to Moore and another outspoken supporter, form GOP presidential candidate Herman Cain, to fill two open seats on the Fed 's board of governors, which sets interest rate policy. Trump indicated he did not formally nominate.
White House officials say Trump is inclined to stick with Moore, even though some of his advisers are more likely than others. The White House also reported support for Cain.
"The president stands behind him," Kellyanne Conway, counselor to the president, said Tuesday of Moore. "He's somebody that gets the economy and I guess we'll continue to focus on that."
Moore said Tuesday that he is referring to the White House and they are "full steam ahead" on his appointment and that he is filling out papers for his background check. Moore said he wants to meet with his record.
"I feel strongly about the independence of the Federal Reserve. I would also like to explore that issue with him, "said Sen. Susan Collins (Maine), has key GOP swing vote. (Matt McClain / The Washington Post)
"If it's about the economy and my record as an economist, I'll probably get confirmed," he said. "If it becomes about my writings from 25 years ago, I might not. That's why I'm trying to turn it back to the economy. "
The Fed is designed to be independent of politics, but it has been broken down by the force of quantitative easing. in the aftermath of the financial crisis.
Powell and the rest of the Fed leaders have been pushed to withdraw stimulus, given the economy's strength, the Fed recently decided to pause. The economy grew at a 3.2 percent annualized rate in the first quarter of 2019, according to data released on Friday, continuing a strong run of recent years.
"Moore has been clear that it would be to further the president's agenda," said Diane Swonk, chief economist at Grant Thornton and a longtime Fed adviser. "It's a dangerous precedent to politicize the Fed with the poison that has already affected our political system."
Unlike most potential nominees for the Fed, Moore has been outspoken in defending his record in media interviews since his name has been floated. He also gives Trump donations to Trump in recent weeks – even giving out charts that emphasize how well the economy has been performing under Trump.
"Trump was good and Democrats were bad," said Dan Eberhart, a Trump donor who attended a FreedomWorks conference with Moore. "He was praising Trump's economic policies extensively. He was very vocal in his support of Trump. "
Eberhart and Swonk both said they were surprised that Moore was so vocal while under consideration for a position.
"Normally people stay quiet and try not to make mistakes, but he did not seem to be following that message," Eberhart said.
Trump routinely quotes the growth and low unemployment the economy has been enjoying since he took office. If the economy keeps growing through July, which seems almost certain, this expansion will become long in U.S. history.
"Our Federal Reserve has incessantly increased interest rates, even though inflation is very low, and is very much in the process of quantitative tightening. We have the potential to go rocket if we did some lowering of rates, like one point, and some quantitative easing, "Trump tweeted Tuesday.
Trump has attacked Powell and told he helps regrets. He has offered near-constant criticism of Powell to lawmakers, supporters and almost anyone who comes in contact with.
Politicians do think shorter term. They want to get reelected. The central bank needs to think long-term. "Frederic Mishkin, President of the United States, has been appointed President George W. Bush.
After Powell Reached a Full Percentage Point Last Year – to just shy of 2.5 percent – Trump decided he would nominate Moore, a longtime conservative commentator, and a Cain
While Republican senators did not say with full confidence Moore would not be confirmed, they felt strong signs that his nomination was imperiled.
"I think it's probably down to the high water mark now of 50 or 51," said Sen. Tim Scott (R-S.C.), Who would have liked to vote for Moore's record as a whole.
Trump is one of those who, who say the president should be elected officials, who are typically PhD economists or Wall Street bankers.
At a gathering in Florida recently, Trump said he wanted to get some of his own people on the board, according to expectedees.
Before September, Trump the Fed on the Fed and the Fed, Steven Mnuchin and other economic advisers, but he has since wrested the process away. The Fed used to be in contact with the White House on appointments, but that has stopped.
Trump has blamed Mnuchin at least six times in recent weeks for the selection of Powell, according to interviews with lawmakers, supporters and assistants who have spoken to the president and spoke on the condition of anonymity.
"You give him something bad and he never forgets," said a Trump adviser who frequently speaks with him, describing his animus to Mnuchin.
Two spots remain on the Fed's seven-seat board of governors. Trump has appointed president of the current Fed governors.
Moore, 59, has a master's degree in economics and has most of his career advocating for tax cuts as a fellow at the conservative Heritage Foundation, a Wall Street Journal editorial board member and president of the Club for Growth.
Republican Senators – Susan Collins (Maine), Marsha Blackburn (Tenn.), And Shelley Moore Capito (W. Va.) -. They mentioned that they could be societal problems if they were not the breadwinners in the family, denouncing coed student sports and saying female athletes do "inferior work" to men.
"It's hard to look past some of those [comments], "Capito said.
Blackburn said she was troubled by what he said as recently as 2014, when he wrote a questioning column about whether women outearning men would cause societal unrest.
"Blackburn said," Blackburn said, "I'm sure it will not be a topic of discussion.
Collins, another GOP swing vote, said that it was not just concerned about Moore's comments on women but also that it would maintain the Fed's independence of politics.
"Obviously some of his past writings are of concern. I feel strongly about the independence of the Federal Reserve. I would also like to explore that issue with him, "said Collins.
Damian Paletta, Erica Werner and Kim Seung Min contributed to this report.
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