I think this asinine article by Bill Dudley (former head of the NY Fed) may be Trump's biggest win yet:
Quote:
Central bank officials face a choice: enable the Trump administration to continue down a disastrous path of trade war escalation, or send a clear signal that if the administration does so, the president, not the Fed, will bear the risks — including the risk of losing the next election. There’s even an argument that the election itself falls within the Fed’s purview. After all, Trump’s reelection arguably presents a threat to the U.S. and global economy, to the Fed’s independence and its ability to achieve its employment and inflation objectives. If the goal of monetary policy is to achieve the best long-term economic outcome, then Fed officials should consider how their decisions will affect the political outcome in 2020.
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In other words, Trump is such a threat to the established order that the Federal Reserve should engineer a recession to stop him. It's almost as if Dudley isn't aware that they have been working hard on that front already: the interest rate went from 0.40% on Dec 12 2016 to 2.40% before last month's 25 bps cut and the Fed is still reducing its balance sheet.
And in other news, Trump continues to build the wall and make photographs with epic music. |
