Criticism of the Fed from lawmakers was fairly muted, even as Trump lashed out repeatedly and publicly at the central bank’s “boneheads” for not easing monetary policy as fast as he wanted. The Fed earlier this year cut interest rates to near zero and ramped up its bond-buying to bolster the economy. Republicans, who control the Senate, also declined to ratify a string of Trump’s controversial picks to fill vacant seats at the central bank’s policymaking table. “Each of these steps lead to a more politicized Fed, which means by definition it is a less independent Fed.”James Dorn, Cato’s vice president for monetary studies, also warned about mission creep. “Instead of engaging in pure monetary policy, now they are moving into these other areas and are allocating credit,” he said.

Source: Dhaka Tribune November 21, 2020 04:41 UTC