Federal Reserve Is As Independent As It Ever Was

How quickly things change! For several months, many analysts and investors worried our new Fed head would be a rate-cutting “sock puppet,” with the rest of the Federal Open Market Committee (FOMC) mounting little resistance as President Donald Trump fired anyone who wasn’t on board. But then new Fed head Kevin Warsh didn’t cut rates in June. The only forward-looking line in his first policy statement was a pledge to deliver “price stability.” And then, this week, the Supreme Court ruled Trump can’t fire Fed board member Lisa Cook. While no one is apparently writing a declaration, this week’s events go a long way to proving fears over the Fed’s independence are faulty.  Read Full Article »