U.S. Central Bank Is Privatized To Protect It From Politicians

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Yorbing Staff Monday April 8, 2019

But politicians want it controlled by them.

WNYC The Takeaway April 8, 2019

Last week, President Trump called, once again, for the Federal Reserve to cut interest rates and suggested it make additional moves to stimulate the economy. Those comments followed President Trump’s recent announcement that he intends to nominate two men to the Fed’s board of governors: conservative economic commentator Stephen Moore and former presidential candidate and CEO of Godfather’s Pizza Herman Cain.

President Trump has continually criticized the Federal Reserve during his time in office including his Federal Reserve Chairman Jerome H. Powell. President Trump claims that the Fed’s raising of interest rates was not beneficial to the economy, railing against Powell’s trepidation on lowering the rates.

Critics say the potential appointment of Cain and Moore could lead to a Federal Reserve that becomes overtly politicized — a break from tradition for a body that’s supposed to stay politically independent. Some also say that Cain and Moore would attempt to do Trump’s bidding within the Fed.

Dean Baker,co-founder and a Senior Economist at the Center for Economic and Policy Research, joins The Takeaway to discuss what may be to come for the Federal Reserve.

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