The Fed should consider lower interest rates and a single mandate

Vice President Mike Pence believes that the Federal Reserve should seek to reduce its policy rate because of the continued growth of the US economy.

"I think it might be time for us to consider lowering interest rates," Pence told Eamon Javers of CNBC on Friday. "We do not see any inflation in this economy."

Pence's comments are entirely in line with the other confidants of President Donald Trump at the White House. Pence, Economic Counsel Larry Kudlow and Treasury Secretary Steven Mnuchin have all previously supported Trump's call for interest rate cuts.

He also raised the idea that the Fed should perhaps focus on a single mandate, maximizing employment, to develop a monetary policy, instead of the dual mandate that also includes low inflation. Pence added that a unique warrant is not something he talked about with Trump.

"When I was in Congress, we had quite a debate about the Federal Reserve's dual mandate and it might be time for us to revisit this issue," said Mr. Pence. "By simply looking at inflation, you specify … it's time, not only to not raise interest rates, but we should consider reducing it."

Trump is also seeking to fill two vacant seats on the Federal Reserve Board. But until now, Trump's nominees have seriously considered retiring. Former Conservative Stephen Moore was the last to withdraw from the Fed's decision on Thursday, following the same path as Herman Cain, who retired last month.

"I think the president is very interested in bringing new ideas to the board of the Federal Reserve," said Pence. "What the President is really looking for is people who understand the dynamic approach of this economy that he puts into practice."

Pence added that the president is looking for candidates "who are as fiercely committed to the free market as he is."

"Jobs are created all over the country … [and that] should be an encouragement for every American and also for people who apply our monetary policies, "said Pence.