CNN panel goes off the rails as Trump defender says the Fed should obey Trump’s whim

The stock market has had a rough December, giving back all of its gains for the year and dipping into the so-called "Trump bump" that followed from Trump's tax cuts for wealthy Americans and his repeal of regulations.

On Wednesday, CNN host Kate Bolduan discussed the developments with Financial Times journalist Rana Foroohar and former Trump economic adviser Stephen Moore.

"There are a few things going on," she said. "Some of them we knew were going to happen. Recovery cycles tend to last about 10 years. A lot of economists were predicting a slow down a year ago at about this time. It's not really a surprise. There are a couple of things that have happened. The president has come and really rattled the market with tariffs and trade war against China. We had a tax plan... that basically enriched companies, allowed allowed companies to bolster share prices but didn't do anything for normal people. All of that is coming home to roost. We have record amounts of corporate debt which is a reason the fed wants to raise rates now. Markets are out of sync with the economy. You need to not have such a big divergence between Wall Street and main street."

Moore said that the China trade war was the real problem, and that he expects the problems will all go away.

"I think that the trade situation with China is really the biggest factor of all because this is a high stakes show down between Beijing and Washington," he said. "This is going to get resolved one way or the other probably in the next 60 days or so. Remember that Trump gave the Chinese 90 days to come up with some kind of concessions on trade... If they get some kind of trade deal that works for the United States, I think you will see a big reversal of the stock market slide and it will be jubilation in the stock market."

Moore said that the market slide that followed interest rate hikes was "an unforced error" and that "everyone agrees" it was "a catastrophic mistake" by the Federal Reserve.

"The Fed should meet tomorrow and reverse that decision," he said. "I mean, there is no basis for the Fed rate increase at a time when we have deflation in the economy. It makes no sense. We are talking about trillions of dollars of losses because of a bone-headed play by the Fed that is easily reversible."

Foroohar said the Fed should remain independent and not yield to Trump.

"The president had no right to take credit for the economy," she said. "The president lives by the markets and dies by the markets. It was a mistake to take credit for what happens in the stock market."

Things went off the rails as Moore claimed "Trump was right," to be mad about the rate hike.

Foroohar said the Fed was just trying to help average Americans.

"You know what they are doing? They are cleaning up the mess of record corporate debt. You pour kerosene on that with the corporate tax cut. Corporations brought back not nearly as much money. Almost none of it went to Main Street, now companies are doing great but real Americans haven't felt it," she said. "We have a bubble in the market."

A defiant Moore talked over her.

"I don't think anybody thinks the corporate tax cuts hurt the economy!" he yelled. "I think Powell has been incompetent so far. I think every move he has made as Fed chairman has caused a massive slump. We have a booming economy."

Foroohar and Moore began talking over each other as Bolduan tried to restore order.

"It's the most ridiculous thing I have heard," Foroohar said. "China is slowing and the global economy is slowing. That could have some effect. We have a bubble in the asset market that has been brewing for a number of years and was not helped by the president's tax cuts which benefitted corporations and stock prices and not real Americans."

"I'm bullish on getting you guys off my show," said Bolduan.

Watch the segment below.