FLASH: Both Messrs Moore and Cain advocate fixing the USD to the price of Gold. Now the Big Q: Will President Trump bring back the Gold Standard?
White House economic adviser Larry Kudlow praised President Trump’s picks of Stephen Moore and Herman Cain for the Federal Reserve Board.
The veteran financial guru said Friday that both potential nominees share the view that strong growth does not necessarily cause inflation, which central bankers try to prevent by raising rates.
Thursday, President Trump said he plans to nominate his political ally Herman Cain, the former head of Godfather’s Pizza, to 1 of 2 vacancies on the Fed’s 7-member Board of Governors.
And 2 weeks ago, President Trump said he would nominate conservative economist Stephen Moore to the other vacant seat on the Fed’s board. Mr. Moore is also a longtime Trump ally who has joined him in criticizing last year’s rate hikes.
“These are very capable people,” Mr. Kudlow told Bloomberg Television. ‘These are people that would like a steady dollar and they do not believe that growth causes inflation,” said Mr. Kudlow
“I think what you have here is a philosophy that strong growth is not inflationary, especially when it comes from the supply side of the economy which is where it coming, as you look at the jobs and the hours worked and the business investment,” said Mr. Kudlow.
“The Fed is independent but for heaven’s sakes strong growth is not inflationary more people working can’t be inflationary and that’s a point of view that I’ve held for three or four decades. I think that’s what those two candidates believe that and I think that’s a good balance to the Fed,” said Mr. Kudlow who heads of the National Economic Council that advises President Trump.
Meanwhile, Bloomberg Businessweek also pointed out another similarity between Moore and Cain: Both are outside the economics mainstream in wanting to peg the USD to Gold.
Recall that while campaigning for President in Y 2016, Trump told GQ, “Bringing back the Gold Standard would be very hard to do, but boy, would it be wonderful. We would have a standard on which to base our money.”
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