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A very dangerous idea that I've seen some people say is that the Fed is somehow "enabling" Trump's behavior on trade by cutting rates.
I don't think there's anything in the mandate that says "Stable prices and full employment*"
"*unless you don't like the President's policies"
I don't think there's anything in the mandate that says "Stable prices and full employment*"
"*unless you don't like the President's policies"
If the Fed ever feels like it should deviate from its mandate on account of not liking what the President's policies, then that could have all kinds of scary ramifications.
I think @delong was saying here that Greenspan rewarded the Clinton administration with low rates in exchange for having tight fiscal policy and if you ask me that's a dangerous game for the Fed to be playing.
Forget about central banks being independent from the federal government. What we really need is for the federal government to be able to operate independently of threats (stated or implied) from the Federal Reserve.
(Should've done a galaxy brain on that one)
