J. Hardy wrote:
Ghost of Igloi wrote:
“The “heyday of central bank independence now lies behind us,” Pacific Investment Management Co.’s Joachim Fels declared Saturday.
He is not alone among economists in delivering the last rites after Turkish President Recep Tayyip Erdogan fired his country’s top monetary policy maker and President Donald Trump continued to attack Federal Reserve Chairman Jerome Powell for raising interest rates too high.”
like so many things...if trump loses and we elect normal politicians again...then central banks will retain their independence. If we re-elect trump or trump-like presidents...forget it. Diplomacy, free trade, the very concept of truth...they will go away.
The idea that Trump is intimidating Powell is beyond ludicrous. No logical mind thinks that is true. If anything, it is quite the opposite.
For all of Trump’s blustering, Powell is still there and we have had exactly zero rate cuts since Trump became president. Powell > Trump
look, many presidents have pressured the fed reserve chair to be looser. No one before thought the prez would go through with actual interference. Trump has proven in his two years that he has absolutely no problem breaking all the rules. His making the DOJ and AG his own personal defense department would have been unthinkable 3 years ago. Now that's what we have.
Trump fired the FBI director to get out from under investigation and has set out to destroy all faith in the FBI.
The Fed will suffer the same fate if it acts opposite to what trump wants.
there is no reason to think trump will suddenly come to jesus and be a respectful follower of rules and traditions.