The Federal Reserve as we know it could soon be turned on its head - News Summed Up

The Federal Reserve as we know it could soon be turned on its head


When officials meet to decide where interest rates should be, they don’t consult the president and other elected officials — and for good reason. That’s because, as one former Federal Reserve chair famously said, central bankers’ job is to remove the punchbowl right when the party is just getting started. I feel that strongly,” Trump said at a press conference in August, referring to the Fed’s interest rate decisions. Lowering interest rates too soon could’ve risked reigniting inflation, which is currently just a tenth of a percentage point higher than the Fed’s 2% target. That’s why countries with independent central banks generally have lower inflation, Fed Chair Jerome Powell told reporters in September after central bankers lowered rates by a half point.


Source: CNN November 07, 2024 03:28 UTC



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