Comment on Trump's unusual public criticism of the Federal Reserve could have unintended consequences

Trump's unusual public criticism of the Federal Reserve could have unintended consequences

Carlos Barria/Reuters President Donald Trump's unusual public criticism of the Federal Reserve could have unintended consequences. The Fed might be forced to tighten monetary policy further than it otherwise would to prove itself impervious to Trump's critique of higher rates. Similarly, politicizing the Fed could restrict the central bank's ability to resort to the sort of unconventional tools that it needed to fight the Great Recession. President Donald Trump has found another institution to go after. But his critique of the Federal Reserve, a dangerous break with historical precedent that could shake investor confidence in the Fed’s valued political independence, could actually have the opposite effect that Trump intends.See the rest of the story at Business InsiderNOW WATCH: A diehard Mac user switches to PCSee Also:LARRY SUMMERS: Trump just took another step toward turning the US into a 'banana republic'Fed chair Jerome Powell is whistling past 2 looming threats to the US economyFED: Manufacturers in every corner of America are worried about Trump's tariffsSEE ALSO: LARRY SUMMERS: Trump just took another step toward turning the US into a 'banana republic'

 

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