CNN Panel Erupts Over Trump Economy: ‘Completely Irresponsible’ to Tell ‘Public Things that Are Not Correct’
CNN’s New Day went on a wild ride on Friday when Stephen Moore and Catherine Rampell clashed over President Trump‘s connection to the fluctuating state of the national economy.
The conversation began when Erica Hill brought up Trump’s recent antagonism of the Federal Reserve, along with the market volatility seen in the recent, major swings of the Dow Jones Industrial Average. As Moore defended Trump’s fight with Fed Chairman Jerome Powell, he claimed that market downturn happened because Powell spoke of rate hikes in a recent press conference, which prompted Rampell to retort with “that’s not true.”
As Moore and Rampell challenged each other on the timing of the contraction, they started sparing over economic deflation and changes in price for certain goods as a result of trade wars with China. Rampell argued that soybean prices have fallen because China stopped buying them from the U.S., and she lambasted Moore by saying “it’s completely irresponsible for you to tell the public things that are not correct.”
“I am old enough to remember when ten years ago, during an actual deflation, you went on TV on a rival network and said we were about to have hyperinflation and it was irresponsible for the Fed to keep rates low. Deflation means prices are going down, and if you go to the supermarket, prices are not going down. When we have normal inflation, suddenly your hard-money ways have disappeared, and you’re claiming the Fed should pump money into the economy.”
Moore pushed back on the idea that he was making up numbers while defending Trump on the basis of disrupting international economics as much as politics. When Hill tried to take the conversation in a new direction by asking about Trump’s possible upcoming meeting with Powell, Rampell didn’t see that leading to anything good, saying “he fundamentally does not understand the central bank needs to be politically independent.”
As Rampell accused Moore of being “completely irresponsible” by urging Trump continues to pressure or fire the Fed chair, he argued that the Fed should be responsive to the president, and that led to a whole new fight over the organizations independence.
Watch above, via CNN.
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