US President Donald Trump on Wednesday demanded a Federal Reserve policymaker resign, ramping up pressure on the central bank to lower interest rates.
The criticism of a Fed governor over unconfirmed allegations of mortgage fraud signals Trump’s “willingness to weaponize the instruments of government to influence monetary policy,” The New York Times wrote.
Experts have warned of dire economic consequences of such interference, and while the Fed has so far resisted Trump’s pressure, an academic who measures central bank independence told the Financial Times that the president’s repeated criticism of Fed Chair Jerome Powell in particular “clearly raises concerns about the de facto independence” of the institution.
