JUST IN: 🇺🇸 President Trump says Fed Chair Jerome Powell is keeping interest rates high for political reasons. https://t.co/e9XSY6rlFP ...

Fed Independence and Political Pressure - Markets rely on the Fed's independence and commitment to price stability and maximum employment [3] - Historical examples show that presidential pressure on the Fed can lead to stagflation [6][7] - Concerns exist regarding potential Fed chair candidates expressing opinions on future monetary policy [17] - A "shadow Fed chair" is a dangerous idea that impairs the credibility of the actual Fed chair [23][24] Economic Outlook and Policy Concerns - The economy is resilient, but concerns exist about future tariff policies [25][26] - Tariffs could lead to increased inflation and decreased household incomes [27][29] - Softness is developing in the labor market, with average job creation around 150,000 jobs per month [28] - Concerns exist about weaknesses in the legislation regarding stable coins and their potential financial stability risks [34] Monetary Policy and Inflation - The Fed's goal is price stability, aiming for 2% inflation, and maximum employment [3][12][15] - Lowering interest rates to ease financing costs on federal debt is not a congressionally mandated goal and is dangerous [3][15] - High inflation is an inevitable consequence when pressure drives monetary policy [3] Fed Leadership and Transition - The President should choose a Fed chair who believes in and will defend the Fed's independence [14] - The next Fed chair should make fact-based judgments based on economic trends and the congressionally mandated goals [15] - The current Fed chair is committed to the Fed's independence and should fulfill his term [31][32]

Fed Independence and Market Reaction - Market reaction to potential Fed Chair ouster includes a decline in the dollar's exchange value, an increase in longer-term interest rates, and a stock market decline [2] - Markets rely on the Fed's independence and commitment to price stability and maximum employment when assessing the US economy [3] - Presidential pressure on the Fed to lower interest rates for government financing purposes is disconcerting to markets and can lead to high inflation [3] Historical Context of Fed Independence - Historically, presidents have attempted to pressure Fed chairs, such as LBJ and William Martin in 1965 [5][6] - Richard Nixon's pressure on Arthur Burns led to stagflation, weak growth, high unemployment, and high inflation [7] - Fed's track record over many decades has been successful in maintaining low and stable inflation [12] Current Economic Situation - The US post-pandemic experience saw a surge in price pressures, similar to other developed countries [13] - Inflation is coming down and is close to the Fed's 2% goal, with a strong labor market at 41% unemployment [13] Fed Leadership and Political Influence - Many Fed chairs have had past experience in the White House, which is natural as presidents gain confidence in their judgment [10] - Fed chairs should make fact-based judgments and pursue congressionally mandated goals of price stability and maximum employment [10][11] - Fed chairs need to stay out of politics and avoid succumbing to short-term political pressures, behaving in a nonpartisan way [12]

Joining us now, Semour White House correspondent Shelby Talcet and Financial Times columnist and provost of King's College Cambridge, Jillian Tet. Um, Shelby, what's behind this. Well, I think this all of course stems from the fact that interest rates aren't being lowered.We've heard the president talk about this for months. It is a clear thing that he wants. He wants those interest rates lowered.He's gone after Jerome Powell for months publicly and privately. And this is sort of, I think, you know, ratchet ...

inputs and at the end of the day it's his decision. Would you just offer up what your opinion would be uh on firing J Pal if the president were to do that. You think that would be a good idea or would you dissuade him from that.Uh look uh Joe, I I think that what we need to do is examine the entire Federal Reserve institution and whether they have been successful. He wanted no part of that direct question. That was Treasury Secretary Scott Besset.this morning on CNBC responding to a story in the Wall Street ...

Joining us now, the former chair of the National Economic Council of Adviserss under President Biden, Jared Bernstein. Welcome back, Jared. It's always good to see you.So, let's start with what the Commerce Secretary was talking about there and this kind of whiplash in the markets last week to news that Trump considered firing Federal Reserve Chair Jerome Powell. Markets then dropped, but Trump backed off, saying it was highly unlikely, but he doesn't rule it out. So, the Wall Street Journal reports Treasur ...

Donald Trump's attacks on the Fed are not just about its chairman, Jerome Powell. In fact, they're not really about Jerome Powell at all. The attacks are about whether we still believe America's central bank should be insulated from political interference.It's about turning one of the most trusted financial institutions in the world into a partisan weapon. And it's understandable if you don't think that much about the Fed at all. But the consequences of Trump's relentless attacks on Powell are more dangerou ...

Dimitar Radev, who’ll help set euro-zone interest rates from next year, has seen more than his fair share of political upheaval https://t.co/6e4DLooI5Q ...

.@SteveForbesCEO calls out Fed Chair Jerome Powell for "playing politics" on refusing to cut interest rates, which not only damages the economy but hurts the U.S. dollar. #WhatsAhead https://t.co/DClZY8DEkF ...

I want to kick off the conversation with the fact that the Fed has been waiting to see what the impact of tariffs will be on inflation over the summer months before charting a course forward on interest rates. And we got the first reading of that this week with the June CPI. We saw that tick up a tenth of a percentage point to 2.9%.That was up from 2.8% previously. Are you seeing any indication that tariffs are pushing up inflation now. I think you saw it on goods.If you look at the core goods inflation, es ...