A well-known and often polarizing figure in Washington's political circles is being appointed to fill a vacancy on the board of seven members of the Federal Reserve, President Trump announced Friday.
Stephen Moore, a conservative economic analyst and hard-working Fed critic, was Trump's advisor during the 2016 campaign. As such, the Loyalist contributed to the development of Trump's tax reduction plan.
Trump can score points with his main supporters – and with the majority of Republicans in the Senate – by embracing a conservative activist for a role of the Fed that would make him a watchdog of the economy.
"FreedomWorks is proud to see President Trump offer such a prestigious position to one of our own," said Adam Brandon, chairman of this conservative rights group. "I have no doubt Stephen Moore would make an excellent member of the Federal Reserve Board."
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A strong supporter of tax cuts, Moore is close to Larry Kudlow, president of the National Economic Council of the White House. The two men collaborated on Trump's tax reform at the end of 2017, leading to changes that have largely spurred tax cuts for richer companies and individuals to boost investment. and growth.
Trump has severely criticized the Fed's rate hikes, even after the central bank announced this week that it was not planning any hikes this year. Moore, former chief economist of conservative Heritage Foundation, also criticized President Jerome Powell's policies.
The Senate must confirm Moore's appointment. Given his strong reputation as a supporter, Moore could spark opposition among Democrats in the Senate.
Trump, during his first two years in office, has been able to reshape the central bank. He named four of the current five members. And he appealed to Powell, who had been chosen to sit on the Fed's board by President Barack Obama, to succeed Janet Yellen as president. If it is confirmed by the Senate, Moore would fill one of the two vacancies on the board.
Moore's choice marks a departure from Trump's earlier choices for the board of directors, to the benefit of a more public figure who has long defended conservative economic and political ideology.
With Trump as president, Moore strongly criticized the Fed's policy of reducing its balance sheet and lowering rates to what the central bank considers a neutral level – neither stimulating nor curbing growth. He went so far as to suggest that Trump might consider trying to fire Powell for rate hikes under his supervision.
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Moore frequently praised the administration and he co-wrote the book "Trumponomics" of 2018. His partner in this book was Art Laffer, who developed the Republican doctrine that rates Lower taxes would accelerate economic growth in such a way as to reduce debt to a minimum.
However, since Trump's adoption of the tax code, the federal debt has climbed nearly 77% in the first four months of fiscal 2019 compared to the previous year.
Associated Press contributed to this report.