The High (And Self-Defeating) Cost of Playing Politics with the Federal Reserve
==========
The article discusses the potential economic and political consequences of playing politics with the Federal Reserve. It mentions that the Trump campaign might accuse the Fed of making interest rate decisions based on political motivations rather than economic ones. There are reports that Trump allies are planning to blunt Fed independence if he becomes president again. The article also highlights a new NBER working paper that examines the impact of political pressure on the Fed. The paper finds that political pressure shocks increase inflation and have weak negative effects on economic activity. The findings support the benefits of central bank independence. Overall, the article argues that playing politics with the Federal Reserve is self-defeating. The author is James Pethokoukis and the article was published on May 20, 2024.
#FederalReserve #Politics #Economics #InterestRates #Inflation
https://www.aei.org/economics/the-high-and-self-defeating-cost-of-playing-politics-with-the-federal-reserve/
American Enterprise Institute /
npub14z…4fwd3
2024-05-20 19:15:28
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wss://relay.nostr.band/allPublished at
2024-05-20 19:15:28Event JSON
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"content": "The High (And Self-Defeating) Cost of Playing Politics with the Federal Reserve\n==========\n\nThe article discusses the potential economic and political consequences of playing politics with the Federal Reserve. It mentions that the Trump campaign might accuse the Fed of making interest rate decisions based on political motivations rather than economic ones. There are reports that Trump allies are planning to blunt Fed independence if he becomes president again. The article also highlights a new NBER working paper that examines the impact of political pressure on the Fed. The paper finds that political pressure shocks increase inflation and have weak negative effects on economic activity. The findings support the benefits of central bank independence. Overall, the article argues that playing politics with the Federal Reserve is self-defeating. The author is James Pethokoukis and the article was published on May 20, 2024.\n\n#FederalReserve #Politics #Economics #InterestRates #Inflation\n\nhttps://www.aei.org/economics/the-high-and-self-defeating-cost-of-playing-politics-with-the-federal-reserve/",
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