Trump economic adviser slams Fed chairman

Stephen Moore, an informal economic adviser to President TrumpDonald John TrumpO'Rourke: Trump driving global, U.S. economy into recession Manchin: Trump has 'golden opportunity' on gun reforms Objections to Trump's new immigration rule wildly exaggerated MORE, blamed Federal Reserve Chairman Jerome Powell for the recent drop in the stock market in an interview that aired Sunday.

In an interview with John Catsimatidis on New York's AM 970, Moore echoed a number of the criticisms that Trump has shared publicly about the bank chief, who announced earlier in the week that the Fed would raise interest rates despite protests from the president. 

"We need to be putting more dollar liquidity into the economy because there’s such a demand for dollars now all over the world," Moore said. "Everybody wants to invest in the United States and at the same time the world wants more dollars. The Fed is sucking them out of the economy. And it has really hurt the stock market."


Moore, who recently co-wrote a book titled "Trumponomics" with Art Laffer, said the two visited the White House recently, where the president asked them whether he should've kept former Federal Reserve Chairwoman Janet YellenJanet Louise YellenThink of this economy as an elderly friend: Old age means coming death On The Money: Rising recession fears pose risk for Trump | Stocks suffer worst losses of 2019 | Trump blames 'clueless' Fed for economic worries Recession fears surge as stock markets plunge MORE instead of appointing Powell.

"We looked at each other and said, 'Janet Yellen couldn’t have been any worse than the guy he’s got in there now,' " Moore said.

He went on slam Powell, echoing the president's criticism of the Federal Reserve chairman over his monetary policy and suggesting Trump could fire him for cause.

"The law says, I believe is that he can replace the Federal Reserve Chairman for a cause," Moore said. "I would say, well the cause is that he’s wrecking our economy."

Legal experts have questioned whether the president has the authority to remove the chairman of the Federal Reserve given the board's role as independent from the White House.

Bloomberg reported on Friday night that Trump discussed replacing Powell as he grew increasingly upset over the Fed chairman's decision to raise interest rates.

White House press secretary Sarah Huckabee Sanders reportedly said Saturday that she was "not aware" of any plans to remove Powell.

Powell was confirmed to lead the Fed earlier this year, and has since become a punching bag for criticism from the president. Trump has blamed the bank chief for a slew of economic setbacks, including the stock market losses and General Motors layoff plans.

Trump in October even said that he "maybe" regretted tapping Powell to lead the bank.