IMF's Tobias Adrian, speaks in relation to Trump's recent criticism of the Fed
- The Fed is set up as a very independent institution
- 'Dangerous' consequences if Trump's calls lead to monetary policy mistakes
- Says that IMF is in support of Fed's current policy stance
- Investors should take recent yield curve inversion seriously
The only thing that strikes my mind when it comes to this issue is that Trump's criticism may inadvertently force the Fed to be less independent in order to prove their independence. It sounds convoluted but if Fed officials are upset by getting pushed by the guy in the Oval Office, they may very well just stick to their guns despite the US economy starting to send warning signals in recent months.
