Economics
Trump Attacks on Fed Could Backfire, Boosting Powell's Support
- Fed presidents back chairman in supporting higher rates
- Powell’s had no dissents since taking charge in February
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President Donald Trump’s attacks on the Federal Reserve may hold a silver lining for Chairman Jerome Powell: preserving unity among colleagues who can sometimes go rogue.
America’s central bankers have a strong culture of closing ranks during times of strain to defend the chair and preserve institutional independence. Even though there’s an argument for holding interest rates steady, Trump’s pressure may make any dissent less likely at the Dec. 18-19 meeting when a fourth quarter-point increase this year is widely expected.