Analysis: Trump's close relationship with Fed Chair Kevin Warsh creates economic risks for the central bank's independence
An analysis suggests that former President Trump's reported repeated phone calls to Fed Chairman Kevin Warsh, treating him as an ally, could complicate the central bank's efforts to demonstrate independence on inflation and interest rates. This marks a shift from Trump's previous contentious relationship with Warsh's predecessor, Jerome Powell. While the White House states Trump respects Warsh's independence, and Warsh himself has affirmed his willingness to hear from the President while making his own decisions, market commentators have already questioned Warsh's credibility after his recent press conference. Former Treasury Secretary Timothy Geithner warned that Warsh might have to take more aggressive action than otherwise necessary to prove the Fed's independence if inflation spikes, potentially slowing the economy to make a political point.
Source:CNBC头条 · Source Link
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