CHARLES: WE LEARNED YESTERDAY
THAT FED OFFICIALS PLAN TO HOLD
RATES STEADY FOR REMAINDER OF
THE YEAR.
PRESIDENT TRUMP WOULD LIKE TO
SEE THE FED CUT RATES A COUPLE
TIMES TO KEEP THIS ECONOMIC
MOMENTUM GOING.
MY NEXT GUEST AGREES WITH THAT
NOTION.
PRESIDENT'S PICK FOR THE FEDERAL
RESERVE BOARD NOMINEE, STEVE
MOORE.
>> HEY, CHARLES.
>> MADE A LITTLE BIT OF NEWS THE
PAST WEEK.
WHY, I NEVER KNEW THIS MUCH
ABOUT ANY POTENTIAL FED MEMBER
EVER, CHAIRMAN OF THE FED, EVER.
WHY HAVE THEY ZEROED IN ON THIS?
>> WITH A LOT OF PERSONAL
INSULTS, GOING INTO MY DIVORCE.
THE STORY HERE THE LEFT HAD
THEIR KNIVES OUT FOR ME.
THEY KNOW MY HISTORY.
THEY KNOW I BELIEVE IN FREE
MARKETS, LOWER TAX RATES.
I'M A SUPPLY-SIDER.
I DON'T BELIEVE IN THE KEYNESIAN
MODEL, THAT CREED.
WHAT HAPPENED AS SOON AS I WAS
NOMINATED "THE WASHINGTON POST"
AND OTHERS DID SURVEY OF
SENATOR, LO AND BEHOLD STEVE
MOORE HAD THE VOTES.
THEY REALIZED WOULDN'T DEFEAT ME
ON MY IDEAS.
CHARLES: SO THEY SNEERED YOU?
>> SMEARED ME.
CHARLES: PROFESSIONAL COMPETENCE
AND PERSONAL LIFE.
IT'S A DAMN SHAME.
I WANT TO TALK ABOUT WHERE THE
FED IS GOING.
I GOT TO TELL YOU, I'M WATCHING
THIS VERY CLOSELY.
IT FEELS LIKE BOTH POLITICAL
PARTIES ARE LOOKING TO THE
FEDERAL RESERVE IN A DIFFERENT
ROLE.
AS A PIGGYBANK, TO THEN WITH
THEIR SPENDING PLANS.
>> MMT THEY CALL IT.
CHARLES: WHERE THERE HAS BEEN
SUGGESTED DEFICITS DON'T MATTER
ANYMORE.
SEEMS TO ME HEY, YOU CAN'T TAX
ANYBODY.
THERE IS NO MORE MONEY EXCEPT
THIS MAGIC MACHINE, THE FEDERAL
RESERVE THAT CAN PRINT TRILLIONS
OF DOLLARS OUT OF THIN AIR.
>> THE FUNNY THING, I WAS
CRITICAL OF THE DECEMBER RATE
INCREASE, I THINK I WAS THE
CANARY ON THE COAL MINE, AS SOON
AS THAT HAPPENED I SAID IT WAS
REALLY BAD FOR THE ECONOMY.
THE STOCK MARKET TUMBLED.
I WAS PROVEN RIGHT.
WEEK AFTER CHRISTMAS THE FED
REVERSE COURSE.
MY VIEW IS THERE IS TOO MANY
PEOPLE IN WASHINGTON AND IN THE
POLITICAL CLASS, BUT EVEN
THOUGH, AMONG FED ECONOMISTS AND
SO ON, WHO BELIEVE YOU CAN
STIMULATE THE ECONOMY BY
PRINTING MONEY.
THAT IS JUST FALSE.
YOU CAN'T DO THAT.
THE FED DOESN'T -- ALL THE FED
CAN CONTROL IS PRICE LEVEL OF
THINGS.
CHARLES: WHY WOULD A RATE HIKE
BE A MISTAKE THEN?
>> BECAUSE RIGHT NOW I BELIEVE
THAT IN FACT OVER THE LAST FIVE
OR SIX MONTHS WE'VE ACTUALLY
BEEN IN A SLIGHT DEFLATION.
I LIKE TO LOOK AT COMMODITY
PRICES.
THAT HAS BEEN A CONTROVERSIAL
POSITION.
COMMODITY PRICES ARE THE FIRST
THING, THE FIRST SIGNAL YOU GET
ON PRICES.
YOU CAN GO ON YOUR COMPUTER
RIGHT NOW, CHARLES, THIS SECOND
FIND OUT WHERE THEY ARE IN REAL
TIME.
YOU DON'T KNOW WHAT THE CONSUMER
PRICE INDEX UNTIL SIX WEEKS
LATER.
YOU DON'T KNOW GDP NUMBERS ARE
UNTIL SIX MONTHS LATER.
IT IS GOOD WAY TO FIGURE OUT
PRICES.
THE PROBLEM I HAD WITH THE FED
IN SEPTEMBER AND DECEMBER.
GO BACK TO LAST SUMMER, 4%
GROWTH, FULL EMPLOYMENT, RISING
WAGES.
NO INFLATION.
THERE WAS NO SIGN OF INFLATION
ANYWHERE.
THE FED STARTED RAISING RATES.
MY ATTITUDE, WHY?
WHY DO THAT?
GROWTH DOES NOT CAUSE INFLATION.
CHARLES: RIGHT.
>> PUTTING PEOPLE TO WORK DOES
NOT CAUSE INFLATION BUT THAT IS
MODEL --
CHARLES: THAT IS THE OLD MODEL.
>> I MEAN THAT IS THE RIGHT
MODEL.
THE OLD MODEL, KEYNESIAN MODEL,
TOO MANY PEOPLE WORKING, MAKING
TOO MUCH MONEY WE HAVE TO PULL
THAT.
CHARLES: WALL STREET ALWAYS
BELIEVED WAGES CAUSED INFLATION,
HIGHER WAGE.
>> THAT IS COMPLETELY WRONG.
CHARLES: THAT IS THE OLD MODEL.
DON'T YOU THINK JAY POWELL HAD
EPIPHANY?
WAGE INFLATION IS NOT PRICE
INFLATION.
I THOUGHT THAT WAS AMAZING.
I THOUGHT IT WAS THE BEST THING
I SAID ALL YEAR.
>> PEOPLE LIKE ME AND OTHERS WHO
BELIEVE IN IT, I THINK WE'RE
HAVING INFLUENCE ON THEM.
HE GOT CAUGHT BY SURE IS PRIZE.
BAD ADVICE IN DECEMBER.
HE WAS EMBARRASSED BY THAT.
HE KNOWS HE MADE A MISTAKE.
HE MAY NOT LISTEN TO THE SAME
PEOPLE AT FED HE WAS.
PEOPLE ASK ME WHAT WILL I DO
WHEN I GET TO THE FED?
I WANT TO MAKE CHAIRMAN POWELL
THE MOST SUCCESSFUL CHAIRMAN OF
THE FEDERAL RESERVE EVER.
HOW DOES HE BECOME SUCCESSFUL?
CONTINUING TO PROVIDE GROWTH TO
THE ECONOMY AT STABLE PRICES AND
HE WILL BE A HERO.
CHARLES: I THINK HE WANTS TO BE
A HERO.
>> HE DOES.
CHARLES: YOU'RE A HERO, STEVE.
I ADMIRED YOU FOR A LONG TIME,
RESPECT LEVEL GONE THROUGH THE