The last couple years, we're told, saw the economy wobble too far toward the inflation side, with the Fed now attempting to pull the economy back to the thin line of stability without tipping over too far and plunging into a recession.
The Fed doesn't prevent recessions, it directly causes them.
Reporters cite an internal ten-page document that argues the president should be consulted on interest-rate decisions and have the authority to fire Fed chairs before their term is up.
It is absurd that this needs to be spelled out, but the Fed is already a political organization.
Congress passed another bill requiring the Fed to pursue specific policy goals.
Fed chairs already consult with current presidential administrations through the Treasury Secretary.
The real risk, from the establishment's perspective, is not that Trump will turn the Fed into a political organization but that he will expose the fact that it already is one.
No comments:
Post a Comment