Stephen Moore does not see the possibility of a 1% Fed rate cut, disagree with Trump

Stephen Moore, a candidate for the Federal Reserve, does not agree with President Donald Trump's appeal to ask the central bank to cut rates considerably.

"I'm not sure I agree with the White House that we should cut rates by an entire percentage point," Moore told Bloomberg News on Thursday. "I just do not see the case for that right now."

Moore made his comments two days after Trump called for a 1% reduction in the Fed's key rate and called for more quantitative easing, measures used by the central bank to boost the economy after the financial crisis.

In a series of tweets, Trump said that the US economy would rise "like a rocket" if the Fed loosened its monetary policy.

Trump's call for a rate cut came after the Commerce Department said the US economy grew at an annualized rate of 3.2 percent in the first quarter. It was the best start to the year since 2015.

On Wednesday, the Fed kept its interest rates unchanged, citing sluggish inflation. However, Fed Chairman Jerome Powell said low inflationary pressures could be simply "transitory", suggesting that inflation could accelerate.

The Fed raised rates four times in 2018. The latest rate hike was followed by a massive sell-off in the stock market, followed by a sharp rebound.

Mr Moore added that he "could advocate for the repeal of the rate hike that occurred in December" as the economy slowed down at that time.

Trump has not yet submitted Moore's name as governor of the Fed. The potential bid ran into difficulties due to controversial statements uncovered in Moore's past.

Despite growing opposition from both parties, Moore said he would not withdraw his name, which had recently been done by Hermain Cain following controversies and indications that he would not have received enough Republican support to hold a confirmation hearing.

"I will not withdraw," Moore told The Wall Street Journal in a report released Thursday morning. Moore said he spoke to a White House official who encouraged him to continue the process.

Subscribe to CNBC on YouTube.