President Donald Trump has so far mostly respected Federal Reserve independence, but that is likely to change if economic conditions deteriorate, says Wharton Fed watcher Peter Conti-Brown.
Conti-Brown says Trump’s eventual war on the central bank will probably start with a negative report on Fox & Friends, followed by an angry tweet.
“When that occurs, expect open warfare to be declared,” he warns.
It will start with a negative comment on Fox & Friends. And then a presidential tweet.
How the Federal Reserve reacts to an attack from President Donald Trump under the leadership of his own appointee, Jerome Powell, will be a test of the central bank’s hard-fought, always-fragile political independence.
That’s how Peter Conti-Brown, assistant professor of legal studies and business ethics at Trump’s alma matter, the Wharton School of Business, sees the president challenging the central bank’s interest rate hikes at the first sign of considerable market or economic weakness.
“Watch to see how Fox & Friends deals wth the Fed,” Conti-Brown told a group of reporters at a Wharton-sponsored seminar. “So far it’s been with indifference.”
The Fed is set to raise interest rates again Wednesday as the economy keeps humming along and unemployment remains at an 18-year low. Wage growth, …read more
Source:: Businessinsider – Finance