According to McClatchy DC, President Trump announced on Twitter that he planned to nominate Stephen Moore to the Federal Reserve’s board of governors. Moore helped administer the tax cuts that caused years of budget shortfalls under former Governor Sam Brownback.
Moore, who was the economic advisor for Trump’s 2016 campaign, would sit on the seven-member board of governors for the Federal Reserve. The Fed oversees monetary policy and regulates banks.
Democrats are irritated with this nomination, as Moore has called for Jerome Powell, the board chairman, to be fired. More, they believe Moore to be unqualified for the position.
“I think Moore was selected because Trump read an article or he saw him on TV and he liked him and that was as far as it went. I don’t see him as a qualified person to be on the Fed,” said Sen. Sherrod Brown, D-Ohio, the ranking Democrat on the Senate Committee on Banking, Housing and Urban Affairs. This is the committee which handles nominations to the board.
“This is essentially a lifetime… a years and years long appointment lasting through presidents. You don’t give these away lightly like Trump already has.”
Board members serve 14-year terms.
Although the Fed doesn’t deal with tax policy, Democrats will likely use Moore’s role in Brownback’s “real life experiment” against him. When discussing the nomination, Senate Minority Leader Chuck Scumer (D-NY) pointed to Moore’s role in devising Trump’s 2017 tax cuts.
“Mr. Moore doesn’t have the background. He’s a politician. He’s political. He’s always wanted cut taxes, cut taxes, cut taxes. He’s one of the reasons we have such a big deficit now because of his advocacy,” Schumer said.
Moore credited himself with advising Brownback on “an aggressive tax rate reduction plan to help revive an underperforming Kansas economy.”
“It’s true, tax cuts don’t have magical powers, and it is an oft-repeated caricature by the left that Laffer and I and others believe that to be true… But what is irrefutable from the evidence in the states is that strategic tax rate reductions can ignite growth and employment,” Moore said.
Moore’s tax cuts lead to years of budget shortfalls.
State Representative Jim Ward (D-KS) said that Moore’s role in Brownback’s policies should disqualify him for a seat on the Fed’s board.
“If he brings the financial philosophy that he espoused in Kansas six years ago that’s very dangerous for the U.S. economy,” Ward said.