Join Jim and Greg as they welcome the news that badly outspent GOP candidates are getting an infusion of $160 million from Mitch McConnell’s Super PAC for the final push to November. They also shudder as Fed Chairman Jerome Powell says he will be acting aggressively to rein in inflation but that many people will feel “pain” in the meantime. And they hammer the FBI after Facebook Founder Mark Zuckerberg tells Joe Rogan how the Bureau told Facebook to be on the lookout to confront expected Russian disinformation. That led Facebook to limit the reach of posts related to the Hunter Biden laptop story.
Jim and Greg serve up all good martinis today! First, they welcome the warning from former Clinton administration Treasury Sec. Larry Summers that the Fed needs to focus on fighting inflation instead of getting involved in “woke” issues. They also enjoy seeing Maine Dem Rep. Jared Golden announce that he is opposed to the reconciliation bill, leaving Nancy Pelosi with a very narrow margin. And they’re happy to see Sen. Joe Manchin state that is opposed to the IRS getting access to our bank account transactions at any threshold without a very good reason.
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The U.S. economy keeps humming along, boosted on Friday by much stronger February job growth than expected, but with the markets in turmoil over the coronavirus, what will the economic impact be in the weeks and months to come?
On Friday, the Labor Department released the February jobs report, showing 273,000 new hires, nearly 100,000 more than Wall Street analysts anticipated. Hiring was strong across most sectors and the unemployment rate once again dipped to a roughly 50-year low of 3.5 percent.
What is driving this continued hiring and economic growth? Supporters of President Trump or his policies point to tax cuts and regulatory reductions as spurring business owners to add personnel or expand operations, but how exactly do those policies do that?
Heritage Foundation economist Joel Griffith shares those answers with Radio America’s Greg Corombos. Griffith also explains why the markets are wildly fluctuating in response to the coronavoirus threat, which policies make the most sense in response, and why the Federal Reserve was wrong to institute an unscheduled interest rate cut this week.
Listen here for the full podcast.
On Thursday, supply-side economist Stephen Moore withdrew his nomination for the Federal Reserve Board of Governors after weeks of scathing criticism from Democrats, the media, and even several GOP senators.
The last straw for the Moore nomination seems to be a column he wrote in the early 2000’s that many deemed disparaging to women. But long before that writing was unearthed, the effort was well underway to sink the nomination.
“Steve’s got a long history of needling the left. Steve’s got a long history of talking up tax cuts and things like that that members of the media didn’t like. Part of it was that and part of it was, ‘Hey, wait a second. This is a guy who sat next to us forever. What’s he doing on the Fed now?” said John Tamny, director of the Center for Economic Freedom at FreedomWorks.
Tamny says Moore was looked down upon for not have the educational pedigree we usually see in such nominations.
“There was a little bit of snobbery going on, that you have to have a certain degree to be at the Fed, when in fact a lot of people there aren’t economists. Not to mention, if you are an economist (at the Fed) your track record for predictions is one of being spectacularly wrong for decades. What were they so afraid of of having Steve on the Fed board? I don’t get it,” said Tamny.
Tamny also dismisses suggestions that Moore was too political for the post, noting that every figure who passes through the Federal Reserve has a political agenda of one kind or another.
But another reason for Moore’s rough reception is his very different approach to the Fed compared to how the board usually operates.
“People at the Fed, almost to a man and woman, believe that economic growth causes inflation. There’s no evidence supporting that. History is very clear that economic growth is driven by investment and investment is all about falling prices.
“But that’s the consensus view inside the Fed and suddenly you’d have this combative person coming in there and questioning what is accepted wisdom. I don’t think they like that very much,” said Tamny.
While Tamny strongly supported Moore’s nomination, he does not share Moore’s view that Fed tried to – or even could – stunt economic growth through interest rate hikes.
“I think this notion that the Fed fiddling around with interest rates could have some sort of major economic impact thoroughly insults the U.S. economy. The idea that we’re reliant on what a bunch of drones do in a globalized world of credit just isn’t a serious one,” said Tamny.
While Tamny believes the Fed has a minimal impact on the economy, he still wants the bureaucrats to just leave the economy alone.
“What the Fed can do best is to do its studies that no one reads and intervene as little as possible because it cannot help the economy. At best it can hurt,” said Tamny.
Listen to the full podcast for more discussion on Moore withdrawing his nomination, including why Senate Republicans were not willing stand up for him.