Stephen Moore Says the Fed Has Been Afraid of Growth
Stephen Moore, a proposed nominee for the Federal Reserve, said he’s planning to challenge the belief inside the U.S. central bank that growth causes inflation and will try to demystify monetary policy so it’s not conducted within a “temple of secrecy.”
“I’m going to come with the idea -- challenge one fundamental idea that I think is endemic at the Fed, which I think is completely wrong, which is that growth causes inflation. Growth does not cause inflation,” he said in an interview on Bloomberg Television on Thursday.
“I’ll say that again: Growth does not cause inflation. We know that. When you have more output of goods and services, prices fall,” Moore said. “And I think the Fed has been afraid of growth -- there’s ‘growth-phobiacs’ over there and I think they’re wrong.”
President Donald Trump said last month that he’s planning to nominate Moore for a seat on the Fed’s seven-member board of governors, drawing criticism from some circles as a move motivated more by politics than sound economics.
Another one of Moore’s “missions” is to open up the Fed.
“I’m going to run on an agenda of transparency, openness. Why shouldn’t Bloomberg and C-Span and others be able to cover everything they do? Why does there have to be this temple of secrecy? So, I want openness and sunlight on the Fed,” he said.
In a separate interview with Bloomberg Radio, Moore said he has to go through FBI clearance and financial disclosures before being formally nominated, and that he expects that process to last about a month.