The Federal Reserve’s job is to manage the economy based on economics, not politics. Most presidents have respected their role. Presidents Reagan, Clinton and Obama renominated chairs appointed by a president of the opposite party. That certainly wouldn’t happen in this highly charged political era.
Presidents may have tried to subtly influence the Fed. Of course, there is nothing subtle about President Trump. His bellicose tweets will accomplish nothing except to make him feel better and give his base some raw meat.
Some are suggesting that they ignore their mission and pass judgement on Trump’s trade war with China. I guess the idea is that they should manage the economy only if they approve presidential policy. Otherwise, they should stand by and let a recession happen. Apparently, the adverse impact on the population is of little concern.
One prominent economist has gone even further. Bill Dudley, a former member of the Fed, said they should consider how their actions will impact the 2020 election. What’s next? Asking FEMA to go slow on rescuing people?
I am sick and tired of both parties putting their political battles ahead of the welfare of the American people. Sadly, there is no sign things are going to get better.