Donald Trump is just one of the Fed’s problems

Source: Washington Post
by Ramesh Ponnuru

“The Federal Reserve is battling four challenges at once. First, it faces the usual job of keeping inflation low while also avoiding a recession. Second, President Donald Trump is demanding that the Fed reduce interest rates — complicating that first task. Third, it has to decide how to respond to Trump’s policies, especially on trade and immigration. Finally, the central bank is once again reviewing its monetary policy, just five years after changes that are now widely considered failures. Federal Reserve Chair Jerome H. Powell can meet the moment by sticking to the institution’s mission, remembering the limits of its capabilities and keeping distance from partisan politics. That last imperative makes Trump’s advocating for lower interest rates counterproductive.” (02/03/25)

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