-
Erosion of Fed independence would slow US economic growth and boost inflation over time
President Donald Trump has publicly urged the US Federal Reserve for months to significantly reduce interest rates to drive stronger economic growth and reduce federal debt service costs. Frustrated with the Fed’s cautious response, he has openly sought more influence over the central bank’s monetary policies: He threatened to fire the Fed chairman, tried to fire one of the Fed governors, and placed one of his economic advisers on the Fed board. However, if he succeeds in pressing the Fed to cut rates more than it would otherwise, America would see slower growth through most of the next decade (see panel a of ... (full story)
- Comments / Top
- Subscribe
Trader#ED1F
Sep 25, 2025 3:46am
Permalink
Trader#12EE
Sep 25, 2025 12:34am
Permalink
-
Related Stories
Real gross domestic product (GDP) increased at an annual rate of 3.8 percent in the second quarter of 2025 (April, May, and June), according to the third estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP decreased 0.6 percent (revised). The increase in real GDP in the second quarter primarily reflected a decrease in ...
FED'S GOOLSBEE: JOB MARKET SEEMS TO BE COOLING, INFLATION IS GOING UP Fed's Goolsbee: Rates can go down a fair bit more if inflation heads toward 2%, but I'm wary of frontloading rate cuts. FED'S GOOLSBEE: RATES CAN DROP FURTHER IF STAGFLATION RISK FADES CHI FED'S GOOLSBEE Q&A/CRAIN'S: HAVING INFLATION GOAL AT 2% 'SUPER IMPORTANT;' DON'T CONSIDER CHANGING WHILE HAVEN'T REACHED CURRENT TARGET #Goolsbee #FederalReserve #economy GOOLSBEE: IF SITTING GOVT CAN TELL CENTRAL BANK WHAT TO DO WITH RATES, INFLATION GOES UP CRITICALLY IMPORTANT FOR FED TO REMAIN INDEPENDENT
San Francisco Federal Reserve Bank President Mary Daly said on Wednesday that she "fully supported" the decision by the Fed to cut its policy rate last week and that further reductions would likely be necessary. "Growth, consumer spending, and the labor market had slowed, and inflation had risen less than expected, remaining largely confined to sectors ...