Trump Interfering With Monetary Policy

Jan 2016
41,541
37,313
Colorado
#1
We've had Presidents interfering with monetary policy before, but never so blatantly as Donald Trump:

Trump 'not happy' with the Fed for raising interest rates

If the Federal Reserve under Chairman Jerome Powell had NOT hiked interest rates today, the markets would have been nothing less than SHOCKED, and many participants would have accused the Fed of caving in to political pressure from the White House and President Trump. The central bank is SUPPOSED to be completely independent of political influences.

I note that this was a UNANIMOUS decision by the Federal Reserve Board of Governors.
 

Blueneck

Former Staff
Jun 2007
51,987
37,633
Ohio
#2
We've had Presidents interfering with monetary policy before, but never so blatantly as Donald Trump:

Trump 'not happy' with the Fed for raising interest rates

If the Federal Reserve under Chairman Jerome Powell had NOT hiked interest rates today, the markets would have been nothing less than SHOCKED, and many participants would have accused the Fed of caving in to political pressure from the White House and President Trump. The central bank is SUPPOSED to be completely independent of political influences.

I note that this was a UNANIMOUS decision by the Federal Reserve Board of Governors.
Well, if the economy is as strong as Trump keeps bragging that it is, when would be a better time to raise interest rates than now?
 
Likes: BigLeRoy
Jan 2016
41,541
37,313
Colorado
#3
Well, if the economy is as strong as Trump keeps bragging that it is, when would be a better time to raise interest rates than now?
One of our longest-serving Federal Reserve Chairmen once said that the job of a central banker is to take the punchbowl away from the party just when it's starting to get fun.

That is just about exactly right.
 
Likes: Friday13