Bloomberg Talks Robert Kaplan Talks Trump's Fed Pressure
Aug 21, 2025
Robert Kaplan, former Dallas Fed president and now vice chairman at Goldman Sachs, shares his expert insights on the delicate balance of Fed independence amid political pressures. He discusses the potential implications of Trump's influence on the Fed’s decision-making, particularly regarding inflation and labor market challenges. Kaplan also analyzes the impact of tariffs on retail earnings, consumer behavior, and small businesses. Plus, he emphasizes the significance of the Beige Book in interpreting economic indicators for a clearer picture of the economy.
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Fed Independence Is Crucial
- Fed decisions must be free from political influence to maintain credibility and effectiveness.
- Robert Kaplan emphasizes the importance of institutional ethics and hopes that independence endures.
Kaplan's Resignation Story
- Kaplan recounts his own resignation amid allegations and eventual exoneration to illustrate institutional pressures.
- He says he stepped down to avoid distracting the Fed and stands by that decision.
Fed Decisions Rely On Consensus
- The FOMC is a consensus-driven body with 12 votes, not controlled by a single individual.
- Kaplan stresses robust debate, local business contacts, and analysis as core to healthy decisions.