Obvious theme to Trump's totalitarian approach is that is breaks down institutions. This article is discussing the POLITICAL pressure Trum puts on the Fed and why that is a problem:
- How does political pressure undercut Fed credibility? -
The problem with a central bank doing the bidding of politicians, is markets no longer believe monetary policymakers will act as needed -- even if unpopular -- when prices start to rise.
Once that inflation-fighting credibility is lost, it takes years to recover, as the United States saw in the late 1970s and early 1980s, and many countries have seen since.
That means the Fed would have to hike rates much more aggressively to clamp down on price increases, which would be likely to harm businesses and slow the economy.
https://news.yahoo.com/political-pressure-complicates-feds-expected-rate-cut-163451376.html
Again, this is short-sighted Trumpism that does real long term harm, like ignoring Congress.
