Trump Tries to Blame Democrats for Stock Market Big Swings; September Unemployment Rate Hit Record Low.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The stock market has smashed one record after another. The country is booming. The stock market is setting records. The stock market has added more than $8 trillion of new wealth. The stock market is at an all-time high, a record. It's pretty amazing, $8 trillion and set every record in doing it.</s>BOLDUAN: The president loves nothing more than touting the gains in the stock market. But now that markets are volatile, roller coaster, as Steve and I were joking, the president is now turning to assign some blame with this, "The market is now taking a little pause. People want to see what happens with the midterms. If you want your stock to go down, I strongly suggest voting Democrat." Is that really what is going on here? Joining me now, Stephen Moore, CNN senior economics analyst, the former Trump economic adviser. He is also the co-author of new book, "Trumponomics, Inside the America First Plan to Revive Our Economy." Congratulations on the book.</s>STEPHEN MOORE, CNN SENIOR ECONOMICS ANALYST: Kate, thank you very much.</s>BOLDUAN: Thank you for being here. So you have been concerned about the stock market. You've been watching it.</s>MOORE: Who hasn't?</s>BOLDUAN: You seemed earlier concerned about the stock market. Do you join in the president that saying that people taking problems in the market, if you will, are people pausing because of midterms?</s>MOORE: Presidents seem to live and die by the stock market. It is such a volatile thing. You saw what happened with George Bush. The stock market was doing well and then it crashed in his last year in office. I would advise the president, don't tout this stock market too much because, look, we saw a 1,200-point decline over the last few days and then now the latest is, you know, the last couple of days it is up by another 600 points. This volatility, it is kind of making me seasick.</s>MOORE: By the way, my advice --</s>BOLDUAN: Who is at fault for the seasickness? Can you say it is Democrats?</s>MOORE: I'm not -- look, politics doesn't drive the stock market. It does a little bit, but there's all of these other factors.</s>BOLDUAN: Right, exactly.</s>MOORE: Yes. I mean, it's the Fed doing this, it's earnings report. I tell people this is kind of noise right now. If you're in the stock market for your retirement account, you know, for the long term, five or 10 years, don't worry about these dips. The market will do its own thing. And people kind of making the mistake, Kate, of getting really panicked when the market is falling and they sell. So you're selling low and when it will be back, so people --</s>BOLDUAN: So it is --</s>BOLDUAN: So Stephen Moore's advice is don't drown out the president. I'm kidding.</s>MOORE: Just ride it out. The market is going to do what it is going to do. It's going to be volatile.</s>MOORE: Sometimes it's better, if you're somebody in the stock market long term, don't even watch the daily changes in the market.</s>BOLDUAN: So talk to me about, you wrote the book.</s>MOORE: Yes.</s>BOLDUAN: What is Trumponomics?</s>MOORE: Trumponomics, I think, Trump is pro-business. Everything he does is part of what America First is. That he cares deeply about American businesses doing well and American workers doing well. That's why it is America First. That, I think, has been one of the reasons why, you know, since the election -- I mean, Trump is right that the stock market has, even with the dips, the stock market is up 5 percent since he was elected. The other thing, look at the numbers that came out the last couple of days on consumer sentiment. It is an all-time high. We have never seen consumers as confident as they are now. So --</s>BOLDUAN: With that, Stephen, can we -- are you prepared to dispel with the myth that Republicans are the party of fiscal responsibility? I mean --</s>MOORE: Look, my problem right now is neither party is the party of fiscal responsibility.</s>BOLDUAN: But you still have you still have Republicans who want to define themselves as deficit hawks.</s>MOORE: OK. So this gets to -- All right. That's a fair point. That's a fair point.</s>BOLDUAN: You know what I mean?</s>MOORE: But I'll say this. You asked me what Trumponomics is.</s>BOLDUAN: Yes.</s>MOORE: One of the things that Larry Kudlow and I always told Trump during our meetings in the campaign when we were senior advisers, it was like, get the economy going, gets jobs going, because you will not be able to make any progress on the deficit if you don't have a burgeoning economy. I think, quite appropriately, he's put job and the economy number one. And if we keep up this kind of strong economy, right now, the strongest economy in 30 years, the deficit will start to fall as you have more people working and --</s>BOLDUAN: You know the numbers. It is now $779 billion.</s>MOORE: Yes.</s>BOLDUAN: It is up 15 percent -- 17 percent this year.</s>MOORE: Sure. I'm not happy about that. I think everybody agrees we have a big overspending problem. Last year -- the fiscal year ended September 30th. Last year --</s>BOLDUAN: But are the tax cuts worth it if --</s>MOORE: -- revenues were the highest they have ever been. Tax revenues in 2018 are the highest they've ever been. The problem is spending went up by $200 billion. We have a spending problem. I think that's what Trump believes. The problem is frankly neither party is very much interested. Republicans want to spend more money, Kate, on the military. Democrats want to spend money on the best and social programs. Guess what we did. We spent more on both. Shame on both of them.</s>BOLDUAN: On unemployment really quick, it stands at 3.9 percent. Last time that happened, in 2000, it was a third year of budget surplus. We're not seeing a budget surplus now. What's different now?</s>MOORE: I think the big worry, if you're really concerned about, you know, the sizable deficits and the $20 trillion -- I think everyone is concerned about -- it is the ageing of population. I'm a boomer. You're too young to be a baby boomer. But there's 79 million of us and we're retiring in the next 10 years. And that's going to put -- I mean, we have known this for decades that this moment was coming. It is here. It is here.</s>BOLDUAN: Yes.</s>MOORE: Every day, 10,000 more baby boomers retire. Did you know that? Every single day.</s>BOLDUAN: And guess what, they also are? Voters.</s>MOORE: They're voters. And they want their Social Security --</s>MOORE: -- and they want their Medicare and so that makes it really difficult.</s>BOLDUAN: With all of this in mind, with all this in mind, what is the one thing as the president heads into his third year as we -- you know, that you wrote the book on that he should be focusing on in terms of the economy?</s>MOORE: Keep it up. This is such a strong economy. Lowest unemployment rate in 50 years. Keep the businesses investing. Keep it pro-growth. And do not allow Democrats to repeal the tax cut.</s>BOLDUAN: And --</s>MOORE: I'm so proud of it because I think it's had a very positive effect.</s>BOLDUAN: But do not worry about the deficits and -</s>BOLDUAN: Great to see you, Stephen. Thank you. Congratulations on the book.</s>MOORE: Yes.</s>BOLDUAN: Thank you so much.</s>MOORE: Go out and buy it, OK?</s>BOLDUAN: We'll be right back.