A piece from Bloomberg on presidential pressure for low US rates and what the Federal Reserve might do to demonstrate its independence
- Fed Chairman Jerome Powell and his colleagues on the Federal Open Market Committee may feel more inclined to demonstrate their political independence and hike rates when facing a close decision.
- "The president's comments may skew the committee in a hawkish direction," Michael Feroli, chief U.S. economist at JPMorgan Chase & Co., wrote in a note to clients following Trump's criticism of the central bank in an interview on CNBC. "If a decision is a close call, then the appearance of kowtowing to the president may bias them toward raising rates."
Here is the link to Bloomberg for more, worth checking out!
Yes, our cheeseburger eating surrender monkey friend might be surprised others can show a bit more backbone. We'll see.