Trump said he would fire Federal Reserve Governor Lisa Cook under made-up mortgage fraud allegations, which is both illegal under federal US law, illegal under a recent Supreme Court decision that insulates Fed governors from political firing, and a terrible idea. It’s extraordinarily unlikely, in my basically uninformed opinion, that the courts actually do anything – they haven’t, in any way so far, genuinely curbed Trump’s executive powers. Regardless, this puts the Fed at an extremely uncomfortable position: being politicized as a decisionmaking and policymaking body. Since the Fed sets, directly or indirectly, the monetary policy of the entire world, it losing its independent status and thus its standing would immediately reverberate across the globe. If the US loses its monetary primacy, then the US as an economically powerful country, is basically over.
Are things really that bad?
Posted by TrixoftheTrade
2 Comments
Yes
The voters yearn for hyperinflation.