, Columnist
The Fed’s Hand Might Be Forced to Lower Rates
Spending cuts, or even the threat of them, have the potential to slow the economy and give the central bank no choice.
Trump can exert some influence on monetary policy without cajoling Jerome Powell.
Photographer: Drew Angerer/Getty Images
This article is for subscribers only.
President Donald Trump may have found a way to force the Federal Reserve to lower interest rates after all.
It’s no secret that Trump wants lower rates. He also wants more say in monetary policy, even though he already has the power to name the Fed chair and two vice chairs, subject to Senate confirmation. It would be a mistake for the central bank to cede any more of its independence to this president or any future one, and I doubt it will.