The Federal Reserve: Politics and Monetary Policy

This chapter explores the complexities of the Federal Reserve's role in monetary policy amidst evolving political dynamics, particularly in the wake of recent crises. Speakers reflect on the interplay between political influences, such as Trump's criticisms of interest rates, and the Fed's decisions impacting economic stability and inflation. It also examines the challenges of maintaining public confidence in the Fed, while addressing historical contexts and the institution's shifting credibility in managing economic expectations.