In veiled message to Trump, Powell warns against meddling on Fed rates

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In veiled message to Trump, Powell warns against meddling on Fed rates Empty In veiled message to Trump, Powell warns against meddling on Fed rates

Post by Turtleneck on 2018-05-28, 15:21

Federal Reserve Chairman Jerome Powell on Friday issued his sternest warning yet that politicians should not interfere with interest-rate policy, in what appeared to be a precautionary message to President Donald Trump.

In a speech in Sweden, Powell indirectly referred to a previous Fed chairman, Arthur Burns, who was pressured by President Richard Nixon in the lead-up to the 1972 presidential election to keep interest rates low.

That episode eventually contributed to a rapid rise in prices, requiring one of Burns' successors, Paul Volcker, to raise interest rates as high as 20 percent to combat inflation.

“For a quarter century, inflation has been low and inflation expectations anchored,” said Powell, a Trump appointee. “We must not forget the lessons of the past, when a lack of central bank independence led to episodes of runaway inflation and subsequent economic contractions.”
https://www.politico.com/story/2018/05/25/powell-warns-against-meddling-on-fed-rates-572058
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In veiled message to Trump, Powell warns against meddling on Fed rates Empty Re: In veiled message to Trump, Powell warns against meddling on Fed rates

Post by Guest on 2018-05-28, 16:05

And again, as if this has never happened before.

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