'Worst thing' Fed Chair Powell could do now is resign, says fmr. Fed Vice Chairman Roger Ferguson

Federal Reserve Independence - The core issue is the President's pressure on the Federal Reserve to lower rates, which is considered unwise given the current data [3] - The unusual aspect is the public nature of this pressure, risking the perception of the Fed's independence [3] - Resignation of the Fed Chair Powell would be a political move and counterproductive to demonstrating independence [5] - The best course of action for the FOMC is to base decisions on incoming data and maintain a wait-and-see approach [6] - The strength and independence of the Federal Reserve are being tested by the President's public pressure [9] Economic Conditions and Monetary Policy - The President's characterization of the economy as "hot" might influence the Fed's reluctance to cut rates [10] - Current economic indicators, such as jobless claims at 217,000 and an unemployment rate of 4.1%, suggest a strong economy [10][11] - The market believes the Fed has already factored in two rate cuts [11] - Current incoming data does not support the concept of a rate cut [14] - Inappropriate rate cuts could lead to higher borrowing costs for the US due to increased inflation expectations [14]