Quote:
Originally Posted by chadk66
Never gonna happen
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I have some sources that I can't mention that tell me it's already happening.
If you recall, Trump during his campaign often voiced his displeasure for the Fed. Don't count Trump out -- even taking on the Fed. Trump is very big on restoring America's economic greatness, and he sees the Fed as a big obstacle to that goal. Moreover, other presidents have successfully brought the Fed under their thumb.
First thing, noted Kocherlakota, is that pressure from the executive branch on the Fed has traditionally ended poorly. One instance was right after World War II, when the Fed left interest rates unnaturally low so the government could borrow, sending inflation to 10%.
The second instance occurred under Lyndon Johnson and Richard Nixon (who, as Kocherlakota referenced, was caught on tape pressuring Fed Chair Arthur Burns to leave rates low) which led to low rates and the high inflation of the 1970s.
http://www.businessinsider.com/koche...eserve-2016-11
