Old Friends Are Best

Although President Bush comes off as a pillar of the Eastern Establishment, he has always displayed a Texas-bred penchant for bank-bashing. So it's hardly surprising that almost from the day he entered the White House, Bush has grumbled about the Federal Reserve. The President and his lieutenants have used every weapon at their disposal--from barbs in State of the Union speeches to behind-the-scenes arm-twisting--to pressure the Fed to lower interest rates. Not that they got much for their efforts. Rather than hyping the economy, the Fed tried to slow growth into a "soft landing" that skidded instead into a recession.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.