Just after personally nominating, Trump gave a "warning"?
Yesterday, Trump joked at a dinner that if the nominated Federal Reserve Chair Wash did not cut interest rates, he would sue him. Later, he claimed it was just a joke and had not asked Wash for a commitment to cut rates. Previously, Trump had repeatedly pressured the current chair Powell to cut rates without success, and strongly criticized his maintenance of an interest rate range of 3.5% to 3.75%. Wash's nomination is still pending Senate approval, and his appointment has sparked scrutiny of the Federal Reserve's role.
[Witty] Trump's joke about Wash cutting interest rates is another example of his ongoing intervention in the Federal Reserve, breaking the tradition of central bank independence established by the 1951 U.S. Treasury-Federal Reserve agreement. The historical precedent of Nixon pressuring rate cuts leading to stagflation remains fresh, and now Trump pushing for low interest rates is essentially a cover for his own policies. The conflict between Wash's hawkish background and Trump's demand for rate cuts, combined with the Federal Reserve's collective decision-making mechanism, makes policy outcomes highly uncertain. Moreover, the Federal Reserve's ambiguous bond purchases expose deeper contradictions in the American financial governance system. This struggle between power and rules not only concerns the U.S. economy but will also affect the stability of the global financial order!
Federal Reserve New Chairman Nomination
Original: toutiao.com/article/1855919347990540/
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