CNN's New Day Calls Out Trump's Lies About The Economy
CNN Analysts: Trump Is Wrong On Federal Reserve And Unemployment Rate, His Policies Threaten To "Undermine Confidence In Economy"
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From the September 13 edition of CNN's New Day:
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CHRIS CUOMO (HOST): OK, this is a little different than what we're used to with the hyperbole of Trump, because when you mess with the markets and you undermine confidence in the economy, that could be a big problem. However, let's argue whether or not he's doing that. Your take. Trump is saying what a lot of people believe. It's rigged. They're all in on it in Washington. The rates are low. The unemployment is really 40 percent, not 4 percent. They're trying to get over on us, and he is a truth teller. What do you say?
RANA FOROOHAR: Wrong. I would say that the Fed is one of the least political institutions in Washington right now. You know, Fed governors have long terms, the whole system is set up to make it less political. The only reason that some people say that the Fed has kept rates low, that's a political move, is that they're the only people that have been able to do anything over the last eight years to goose the economy because of congressional gridlock. You know, if Republicans and Democrats had been able to agree, and we'd gotten a bigger fiscal stimulus plan through, rates probably wouldn't be so low at this point. But the Fed is watching the economy. They're not seeing a lot of inflation. They're seeing kind of sideways growth. It's still about 2 percent. There's a lot of reasons to keep rates low, still.
CUOMO: And they did just raise rates. And there's speculation about what they'll do going forward. Alright, maybe you get that point but how about this, the unemployment rate: that's a fugazi number, it's not 4 percent. How about all the number who have left the work force? How about all the people in lousy jobs. You know, that rate is actually 40 percent, Trump says he's heard.
CHRISTINE ROMANS: He's heard people say that it's 40 percent. It's not 40 percent. He's also said it's Depression era unemployment. It's not Depression era unemployment. The unemployment rate is 4.9 percent. The unemployment rate measures people who have a job or are looking for a job. What he's talking about are all the people who aren't looking and there are a lot of reasons, Chris, why people aren't looking. Ten thousand Baby Boomers a day hit 65 years old. Some of them are not looking because they're retired. My grandma is not looking for a job because she's 88. You know, there are some people who are not looking for a job right now because they are home taking care of their kids because childcare costs as much as college. So there are a lot of policy driven things we can do to address the people who have been left behind by the labor market, but the unemployment rate is not 40 percent.