Where it stands: Trump has surrounded himself with die-hard acolytes of supply-side economics, like one-time pick for the Federal Reserve Stephen Moore, who argue that fiscal stimulus measures and increased benefits for unemployed Americans not only don’t help, but hurt the economy.
“We’re very worried about Trump doing a deal with Pelosi that would have very negative effects on the economy,” Moore told Axios’ Alayna Treene in July.
Moore predicted that if unemployment benefits from the CARES Act are extended, “You’re not gonna have a jobs recovery in the fall. Not only is that bad for millions of Americans, but Trump can’t win an election if we don’t have a good economy.”
Those advisers have been lobbying Treasury Secretary Steven Mnuchin, who’s leading negotiations for the White House, to focus exclusively on tax cuts and more deregulation to counter the downturn.