Federal Reserve's Consensus Mechanism on Brink of Collapse: Trump's Rate Cut Wish Faces Opposition.
AI Summary1 min read
TL;DR
Fed opposition to a December rate cut is growing, challenging Trump's push for cuts. This division could extend into next year, risking Fed independence if Trump escalates pressure.
Tags
Federal Reserverate cutTrumpmonetary policyFed independence
Fed internal opposition to a rate cut in December is rising, potentially making it difficult for President Trump's anticipated rate cut after appointing a new Fed Chair in May. The division may persist into next year, even with a new Chair. Economists are concerned that Trump may take extreme measures to weaken the Fed's independence if he fails to get his way, which could impact monetary policy outcomes.
