A wide-ranging discussion on monetary policy, state taxation, and economic growth highlighted growing divisions over how government decisions are shaping the national economy. Economist Stephen Moore joined Dan Proft to outline what he sees as immediate priorities for incoming Federal Reserve Chairman Kevin Warsh and to assess broader economic trends playing out across the states.
Moore argued that the central mission of the Federal Reserve should return to preserving the value of the dollar and maintaining its role as the world’s reserve currency. He said periods of high inflation have undermined public confidence in monetary policy and imposed tangible costs on households through higher prices for everyday goods. In his view, restoring price stability requires a renewed focus on controlling the money supply rather than suppressing economic output, an approach he said departs from long-standing but flawed assumptions within the economics profession.
The conversation also turned to the size and scope of the Federal Reserve itself. Moore criticized the scale of the institution’s bureaucracy and questioned whether its large staff and resources have delivered better outcomes. He suggested that a leaner Federal Reserve would be more accountable and better aligned with its core responsibilities, noting that calls to reduce headcount have already drawn internal resistance.
Beyond monetary policy, Moore pointed to early actions by newly elected Democratic governors in states such as Virginia and New Jersey as evidence that campaign promises of moderation are giving way to aggressive tax proposals. He said a broad array of new or expanded taxes, many falling on small businesses and everyday services, risk worsening affordability challenges rather than solving them.
Moore connected those policies to longer-term trends in job creation and population movement. Recent employment and census data, he said, show continued growth in states with lower taxes and lighter regulatory burdens, including much of the South and Mountain West. At the same time, states such as Illinois, California, New York, and New Jersey continue to lose residents and jobs, raising concerns about their fiscal sustainability and political representation.
The discussion also touched on education policy, particularly the expansion of a national school choice initiative. Moore criticized states that have declined to participate, arguing that opting out forfeits federal resources that could expand educational options without increasing state taxes. He attributed opposition largely to political pressure from teachers’ unions rather than to fiscal or academic considerations.
Taken together, Moore framed these developments as part of a broader choice facing policymakers, one between centralized control and policies that prioritize growth, mobility, and individual choice. As debates over inflation, taxation, and migration continue, he argued that the economic consequences of those decisions are becoming increasingly visible across the country.