Trump going after the Fed chair won't effect decisions: Former Fed president Loretta Mester

Federal Reserve Governance - President Trump is expected to appoint a new Federal Reserve governor following Adriana Cougler's resignation, providing an opportunity to influence the Fed's direction [1][2][3] - The appointment allows the president to potentially designate someone as chair or vice chair, further shaping the Fed's composition [3] Fed Independence and Political Pressure - Maintaining the Fed's independence is crucial for effective central banking, leading to lower, more stable inflation and avoiding variable output or employment costs [5][6] - Political pressure on the Fed complicates monetary policy by requiring the Fed to reinforce its focus on fundamentals to the public, legislators, and financial markets [7] - Undermining the Fed's credibility through political interference is detrimental and could lead to higher long-term interest rates, contradicting desired economic outcomes [8][9] Monetary Policy and Economic Analysis - The Fed's monetary policy decisions are based on evaluating economic and financial information, using models and scenario analyses to achieve maximum employment and price stability [7] - The Fed previously cut rates due to weak labor market reports and expectations of declining inflation, but revised data and tariff announcements altered the risk balance [14][15][16] - Future policy decisions will depend on incoming labor market and inflation data, with potential for a 25 basis point cut if service-side prices remain stable or decline [20][21][22]