Published: Sun, May 05, 2019
Worldwide | By Lisa Hogan

Trump Fed choice Stephen Moore withdraws amid controversy

Trump Fed choice Stephen Moore withdraws amid controversy

In his tweet on Tuesday, Trump said, "Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening".

The president, who has criticised the central bank, has been accused of putting forward political loyalists to the Fed.

Moore's withdrawal came amid a growing number of Republican senators criticizing his nomination.

He had called for the Fed to raise interest rates in the aftermath of the 2008 financial crisis, just when the central bank and other agencies were cutting rates or taking emergency actions to help resuscitate the economy and the banking system.

In that atmosphere, his nominations of Moore and Cain were viewed by some as an attempt to bring pressure from the inside. They also were criticised for their lack of qualifications, including by Republicans in the Senate.

Five of the 53 Republicans in the 100-member chamber told AFP there were serious problems with Moore's candidacy. Cavuto noted that political nominations frequently lead to "dirty laundry" coming out in the open these days, and Moore said "if I had had any sense this would happen..."

Democratic Senator Chuck Schumer said Mr Moore never should have been considered for the post.

Trump sought to appoint Moore and Cain as he has become increasingly frustrated with the Fed.

But the White House insisted Mr. Trump stood behind Moore, despite his comments.

However, in those interviews he also disagreed with Trump's call to cut the benchmark lending rate by a full point.

In interviews this week, he tried to walk back some of his comments about women, such as complaining that women's wage gains were now faster the men's, warning of dangers to families.

Another of Donald Trump's picks for a seat on the Federal Reserve has dropped out of the running following fierce criticism of his views.

Powell also declined to comment on a question that touched on some of Moore's stated opinions. "I'm not too concerned about this".

Trump tweeted that he had asked Moore to work with him "toward future economic growth".

The White House has yet to announce new candidates, but Judy Shelton - an economist who's been affiliated with the free-market Atlas Network - was endorsed last month for the job by the Wall Street Journal editorial board.

Former Fed staffer Nellie Liang, another Trump nominee for the Fed, dropped out in January while economist Marvin Goodfriend's nomination died in the Senate past year and was not resubmitted. After Trump's election, Moore reversed course and argued for rate cuts even though the economy was much healthier by then.

The history of the past several decades has caused many economists to embrace the notion of an independent central bank. "The most incredible thing, 'The Washington Post, ' 'New York Times, ' they got my divorce settlement from 10 years ago unsealed so they could just put all of this dirt on me that had nothing to do with my qualifications to be on the Fed".

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