Asks if Betsy Duke was more surprised by the Trump DOJ's actions against Powell or by Powell's swift public response.
Romaine Bostick
Betsy Duke
The timing of Powell's Sunday night response indicates the Fed was deeply concerned about reassuring markets before Asia opened, mirroring crisis-era communications.
Notes that former Fed chairs and Treasury officials called the DOJ action a 'foundational attack' on Fed independence critical for economic performance.
Romaine Bostick
Betsy Duke
The DOJ's move makes no sense as it contradicts the administration's own goals and will have negative economic consequences.
Asks how this political pressure complicates monetary policy making for the next three FOMC meetings.
Romaine Bostick
Betsy Duke
It doesn't complicate near-term policy decisions, as the FOMC will continue to be data-dependent. The complication is for future Fed Chair nominations and board appointments.
Raises the question of whether future Fed appointees will act based on economic data or sycophantic allegiance to the President, given the threat of criminal prosecution.
Romaine Bostick
Betsy Duke
The threat of personal criminal prosecution for board members acting in good faith is chilling and raises the threat level for anyone considering serving on the Fed board.