Reference News Network August 28 report: Spain's "El País" website published an article titled "Trump's Intervention in the Federal Reserve Damaged U.S. Monetary Policy" on August 26, authored by Mercedes Gallego. The article is excerpted as follows:
On the 26th, a chill swept Wall Street, and the dollar plummeted. Lisa Cook, the first African American woman to hold this position, was unexpectedly fired, exacerbating the specter of inflation and casting doubt on confidence in the independence of the Federal Reserve. President Trump had long targeted Cook, attempting to replace members of the Federal Reserve with people who would follow his instructions.
The real concern in the economic world is Trump's unprecedented intervention in the institution that formulates U.S. monetary policy and the world's most important central bank. "Participating in discussions about what Cook may have done or not done would be falling into Trump's trap," Nobel Prize-winning economist Paul Krugman wrote on the "Substack" website. He believes the issue that truly deserves emphasis is the politicization of the government and its descent toward authoritarianism. "It is clear that Trump's only goal is to find an excuse to fire those who are not loyal."
The Wall Street Journal called this day "a black day for the central bank." The president's intimidation sent a very clear message that anyone he appointed must understand that their position depends on whether they can please him. With more than a year until the midterm elections, the president needs to stimulate the economy so that voters feel the benefits of his governance on their wallets, regardless of long-term consequences.
The Federal Reserve is a self-funded institution, and its independence will now be tested in court due to Cook's decision to resist her dismissal.
The Supreme Court, which has been changed in its ideological balance by three judges appointed by Trump during his first term, will redefine American democracy through its rulings. However, so far, it has still upheld the independence of the Federal Reserve. The Federal Reserve was established under the Federal Reserve Act of 1913, which guarantees its independence from the executive branch, precisely to protect the operation of the economy. (Translated by Han Chao)
Original article: https://www.toutiao.com/article/7543473698294759951/
Statement: This article represents the views of the author. Please express your opinion by clicking on the [up/down] buttons below.