While you’d be hard-pressed to find a financial expert who believes the Fed is perfect, you’d have to search even longer for an economist who believes political meddling in the central bank is a good idea.
Many on Wall Street are nervously eyeing just how far the White House is going to press into the Jerome Powell–led institution. The battle has been over the lowering of the base rate, as President Trump wants, and shaping the members of the Federal Open Market Committee more closely to the direction the Oval Office wants to take the economy.
Ken Griffin, like many others, is nervous about the precedent this sets. After all, the U.S. Federal Reserve (like the autonomous central banks of many other developed nations) is a key draw for investors across the planet on account of the fact it is mandated to secure the long-term health of the economy, instead of capitulating to pressure from politicians.
In an opinion piece…
