Economist details how 2022 was ‘terrible’ year for American wallets
The economist said Republicans must cut government spending ‘cancer’ in 2023 to skate recession
Republicans need to cut government spending as much as they possibly can: Steve Moore
Former Trump administration economic adviser Steve Moore says Democrats' fiscal policy has been a 'cancer cell' to the U.S. economy.
Former economic adviser Steve Moore explained how bad the U.S. economy was in 2022 and slammed Republicans for voting to pass the omnibus spending bill, urging them to cut government spending in the new year.
"Shame on Republicans, shame on Democrats in Congress for what they did last week when they passed that $2 trillion spending bill," Moore said. "For my Republican friends who are watching this show – your job in 2023 is to cut government spending as much as you possibly can."
He went on to call excess government spending a "cancer cell" and criticized President Joe Biden for unleashing a "forest fire" of inflation by pushing massive spending bills.
FIVE EYE-POPPING SPENDING ITEMS IN THE $1.7 TRILLION OMNIBUS BILL
Steve Moore says Congress needs to curb government spending to help the economy. | iStock
"What happened at the end of 2022 with Chuck Schumer and Mitch McConnell making this horrific deal – it doesn’t bode well for 2023 in terms of getting our finances straight and getting anywhere near a balanced budget," he added.
Moore, who served as an economic advisor to former President Donald Trump, noted that 2022 was a "terrible" year for the U.S. economy and that his colleagues at the Heritage Foundation calculated the average American family lost around $4,000 in income based on purchasing power.
He added that despite a cooldown in job growth, and interest rate hikes impacting the housing market, the U.S. can still avoid a recession if Congress cuts economy "killing" spending.
Federal spending is putting the U.S. national debt on pace to exceed the GDP by 225% by 2050, according to Penn Wharton.
Last year, the Fed raised its benchmark interest rate from near zero to a target range of 4.25-4.50%. Most officials see it rising above 5% next year and staying there at least until 2024.
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Heading into the new year, the Biden administration believes the U.S. economy can still achieve a "soft landing."
The stand by the White House comes as many economists fear a significant slowdown and possibly a recession is on the horizon as the Federal Reserve continues to aggressively raise interest rates to fight inflation.
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Fed officials projected last month that the U.S. would narrowly avoid a contraction in 2023, with output increasing by just 0.5%. U.S. central bankers expect the nation’s unemployment rate to rise from 3.7% in November to 4.6% by the end of next year.
Steve Moore said it is the Republicans' job to cut spending as much as possible in 2023. (Photographer: Andrew Harrer/Bloomberg via Getty Images / Getty Images)
FOX Business' Ken Martin contributed to this report.