The Federal Reserve Resistance: A recent official urges the central bank to help defeat Donald Trump.
Perhaps you’ve seen former Chairs of the Federal Reserve defending the central bank’s independence and foreswearing all political intentions. Fair enough. But then what are we to make of former Fed monetary Vice Chair William Dudley ’s marker that the Fed should help defeat President Trump in 2020? That’s the extraordinary message from the former, and perhaps future, Fed grandee in Bloomberg.
“Officials could state explicitly that the central bank won’t bail out an administration that keeps making bad choices on trade policy, making it abundantly clear that Trump will own the consequences of his actions,” Mr. Dudley asserts. We also think monetary policy should focus on prices rather than trade. But Mr. Dudley seems to be saying the Fed should do nothing to assist the economy even…
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