Core Points - The Federal Open Market Committee is set to vote on lowering the Federal Reserve's key interest rate next Tuesday, with uncertainty surrounding the committee's composition [2][8] - Fed Governor Lisa Cook, who was fired by President Trump, has been reinstated by a court ruling, allowing her to continue her role while her case is ongoing [3] - President Trump is attempting to fill a vacancy on the Fed's board created by Adriana Kugler's resignation, with Stephen Miran nominated to replace her [4] Pressure for a Rate Cut - The control of the 12-person committee that sets the fed funds rate is at stake, which influences borrowing costs across various loans [5] - High interest rates have been criticized by President Trump, who argues they hinder economic growth and increase government interest payments on national debt [6] - Concerns have arisen among economists that the Fed may lower interest rates due to presidential pressure rather than economic necessity, raising questions about the Fed's independence [7]

Fed Independence Concerns - The market may be underreacting to a serious threat to the Federal Reserve's independence, potentially the most significant in many years [8][9] - Concerns exist regarding the expedited passage of Steven Moran into the Federal Reserve Board while still on leave from the White House staff, raising conflict of interest issues [3][4] - The unprecedented nature of having someone simultaneously serve on the White House staff (on leave) and the Federal Reserve Board is highlighted [6] - The market's current euphoria may be overshadowing concerns about Fed independence [10] Personnel and Policy - A lawsuit is ongoing regarding Lisa Cook's appointment [3] - There are concerns about the President's influence on the Fed through appointments and "jaw boning" around Fed Chair Powell [2] - The temporary nature of a potential appointment doesn't negate concerns about potential influence or future re-hiring by the White House [5]

Meanwhile, a new op-ed in the Wall Street Journal out today. Our next guest saying the assault on the Fed's independence should concern everyone. Former Federal Reserve vice chair and Princeton professor Alan Blinder joins us now to discuss his piece as well as this morning's inflation print.So, I know we've had you on before, Alan, and and you and you've been worried about what the president's doing with Lisa Cook and sort of jaw boning around Fed Chair Powell, but is there any real evidence that the Fed i ...

Group 1 - The article discusses the shifting perspectives of Democrats and Republicans regarding the Federal Reserve's independence and its role in economic recovery [3][4][5] - It highlights the contradiction in Republican demands for rate cuts from the Fed, contrasting with their historical stance against government intervention in the economy [6][8] - The piece argues that government intervention, including actions by the Fed, cannot effectively stimulate economic growth, especially when it substitutes market mechanisms [9][10] Group 2 - The article emphasizes that economic growth fundamentally originates from the private sector, and any government actions merely redistribute resources rather than create them [7][8] - It critiques the notion that the Fed can alter economic realities, labeling such beliefs as delusions [10]

Treasury Secretary Scott Besson has published a broad and sweeping criticism of the Federal Reserve in an issue which is now online and we've read the whole thing uh or most of the whole thing uh in the magazine called the international economy. Uh in the article he calls for an internal Fed review of its policy and all of the things it does and even suggests that the regulatory function the bank regulatory function should perhaps be stripped from the Federal Reserve says the FDIC and the Office of the Cont ...

the administration and Scott Besson specifically have been watching you on this program uh or maybe just reading your research, but um they seem to want to interview you for the top spot at the Fed. Um Treasury Secretary Besson has said he's going to start those interviews today. Are you going to Washington.So I I'm going to focus on the jobs report and my and what I do day in and day out to um to uh to generate return for clients. I you know I'm I'm focused on what I do day in and day out and uh I'm not yo ...

Market Outlook - Australia's top pension fund CIO dismisses concerns about Washington's debt servicing ability [1] - The CIO also brushes aside worries that Trump is weakening Fed independence [1]

Core Viewpoint - Goldman Sachs predicts that gold prices could reach $5,000 due to concerns over President Trump's attempts to undermine the Federal Reserve's independence, with gold already having increased by 35% this year to over $3,500 per troy ounce, making it one of the best-performing assets globally [1][2]. Group 1: Economic Implications - A scenario where the Federal Reserve's independence is compromised could lead to higher inflation, decreased stock and long-dated bond prices, and a decline in the dollar's status as a reserve currency [2]. - The ongoing conflict between Trump and Fed Chair Jerome Powell over interest rates and the Federal Reserve's $2.5 billion headquarters has heightened market concerns [4][12]. Group 2: Market Trends - Gold is viewed as a reliable store of value that does not depend on institutional trust, contrasting with the volatility of stocks and bonds [4]. - The demand for gold has surged as investors seek resilient portfolio options, with foreign central banks now holding more gold than U.S. Treasuries [8]. Group 3: Company Performance - Despite the political tensions, Goldman Sachs' stock price has increased by over 50% in the past year, trading at $740.73 [6].

Adriana Cougler Myin addressed concerns about Fed independence following pressure from the president to lower interest rates. >> I couldn't be more in agreement that independence of the central bank is of paramount importance for the economy, for financial markets, for the long run stewardship of of of the country. Um all of those are are are completely I'm in in complete accord with.Um look, the the president nominated me because I have policy views uh that uh I suppose that he liked. My next guest says My ...

Since you describe how you'll be informed by your political biases, I think the American people have a right to understand just how independent you are or are not. So, let's measure that a little bit. Dr.. Myron, let's start with an easy question to show that you have some independence from the president. Easy yes or no. Did Donald Trump lose the 2020 presidential election.Um, Joe Biden was certified by Congress as the president of the United States, right. So, did Donald Trump lose that election. Um, as I ...