Ripping into Federal Reserve policy for being too tied to the notion economic growth causes inflation, economist Stephen Moore said he is "very worried" the Fed is "working against the pro-growth policies that Donald Trump has put into effect."
"They are still driven by this idea that somehow growth causes inflation," Moore told host John Catsimatidis on "The Cats Roundtable" on 970 AM-N.Y. "I do not believe the Fed has learned its lesson. I'm very worried about the Fed. And I think the Fed is still too tight, even if they don't raise rates.
"I think they should be putting more money into the economy . . . So, I'm very worried right now, my friend, about the Fed working against the pro-growth policies that Donald Trump has put into effect."
Federal Reserve Chairman Jerome Powell has been a frequent target of President Donald Trump's ire on Twitter, calling him out for his anti-growth policies of raising interest rates, which has hurt what was a thriving stock market.
"The Fed made a major, major blunder right before Christmas," Moore said. ". . . When the Fed Chairman was speaking and announcing his rate hikes, the stock market fell by 700 points. So, you think they might have gotten a clue that they were doing the wrong thing. And then we went through another 2,000-point tumble on the Dow.
"And that was because the Fed was sucking the oxygen out of the economy with rate increases at a time when, I believe, the Fed needs to be pumping more money into the economy because . . . we've got a booming economy. And that means you've got to put more dollars into the economy because everybody in the world wants to invest in the United States."