Economist urges Fed to meet 'now' to cut rates as stocks tumble: It's a 'frightening time'

Economist Stephen Moore urged the Federal Reserve to act on interest rates as the market meltdown intensifies.

"Commodity prices are falling very rapidly right now," he told FOX Business’ Stuart Varney on "Varney & Co." Monday. 

"We’ve moved from a problem with inflation right now to deflation in prices and I think the Fed has to act to stop that."

Federal Reserve Chairman Jerome Powell told reporters at a press conference following the FOMC’s two-day meeting that a September rate cut could be "on the table" if inflation continues to cool.

"We’re getting closer to the point at which it’ll be appropriate to reduce our policy rate," Powell said, "but we’re not quite at that point."

Moore’s comments come on the heels of U.S. stocks falling sharply on Monday as part of a global market sell-off sparked by recession fears. 

Moore believes the drop in commodity prices is a sign that the economy is "really slowing down" and the only question is whether the Fed should go to a "quarter point or 50 basis points" cut. 

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However, the economist said he was unsure of whether we’re actually seeing the "start of something really deep like a recession" or if there is a "blip" in the market.

"I’m not saying we’re facing a recession, but I think it is a frightening time," he stressed. 

As debates ensue as to what’s driving the selloff, Moore pointed out the "interesting" timing of Kamala Harris rising in the polls and the drop in the markets.

"I’m not saying this is statistically significant, [but] as Trump has dropped in the polls, as he has over the last 10 days because of this kind of Kamala phenomenon, the market has reacted in a negative way," he explained. 

Moore said the reasoning behind the finding is simply because Harris is "really bad for investment."

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"This is a woman who wants to double the capital gains tax and tax unrealized capital gains, and those kinds of things," he expressed.

The Biden-Harris team has received criticism for their handling of the economy during the past three years.

It was recently reported that White House senior economic adviser Gene Sperling is leaving his post at the White House to work as a senior economic adviser to Harris’ policy team for her 2024 campaign.

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FOX Business’ Megan Henney, Brianna Herlihy and Matthew Kazin contributed to this report