Trump Renews Attack on Fed as Mnuchin Tries to Calm Markets
From New York Times, In Print — Dec 24th, 2018
Markets plunged in December 2018 despite the Trump administration’s scramble to calm investors, as the president lashed out at the Federal Reserve and questioned Jerome Powell’s future as Fed chair. The S&P 500 tumbled to its worst December since the 1930s, stoking fears of political interference in central bank independence.
Henrietta Treyz, director of economic policy research at Veda Partners, said she had even been reviewing the 1935 Banking Act to assess whether Trump could strip Powell of his chairmanship while keeping him on the Fed board. Her analysis reflected how seriously investors were weighing the possibility of unprecedented executive pressure on the Fed—a scenario that risked undermining financial stability further.
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