, Columnist
The Fed Is Both Ally and Scapegoat for Trump
Chair Powell has kept the faith of investors on inflation — something the president needs to push through his policy priorities.
A difficult balance.
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Economics commentators often talk about the importance of Federal Reserve independence. Wednesday’s events drive home the point.
In an alternative universe without an independent central bank, the one-two punch of Trump’s imprudence and disappointing consumer-price data could have sent markets and inflation expectations into a tailspin. Instead, the S&P 500 Index dipped a modest 0.2% and yields on 10-year Treasury notes rose 10 basis points. And by all accounts, Wednesday looked as if it might go down as another stumbling block to the disinflation process, though hardly a death knell.