Tuesday, the Fed rejected a call from a former policymaker to counter President Trump’s trade agenda by refusing to “play along” and denying the President the interest rate cuts he demands.
“The Federal Reserve’s policy decisions are guided solely by its congressional mandate to maintain price stability and maximum employment,” a Fed spokeswoman said. “Political considerations play absolutely no role.”
Earlier Tuesday, in an opinion piece for an anti-Trump news service, former New York Fed President William Dudley called for the central bank to say that it will not “bail out” the administration for its “bad choices” on trade policy.
As head of the New York Fed from Ys 2009 to 2018, Mr. Dudley was vice-Chairman of the committee that sets US interest rates during critical years in the aftermath of the global Y 2008 financial crisis and also ran the regional bank that implements that policy through trading in the market.
Analysts and economists criticized Mr. Dudley’s op-ed, warning that the Fed ought not to decide rate policy on the basis of politics, or to use it to help or hurt a Presidential candidate.
When I called to ask him about his piece, he was non committal.
The may be more on this ugly Gadfly incident, so stay tuned…
Fed, policy, interest, rate, cuts, President, Trump, trade, politics, Dudley, NY,