Bloomberg Talks Former Kansas City Fed President Esther George Talks Trump-Cook Saga
Aug 29, 2025
A former Kansas City Fed President dives into the intriguing legal battle between Trump and a Fed board member. The discussion reveals the challenges faced by the Federal Reserve in maintaining independence amidst political pressures. Key insights into potential interest rate cuts are explored against a backdrop of inflation and a robust job market. The risks of presidential influence on Fed policies are examined, highlighting its impact on economic stability and public trust.
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Attack On Fed Institutional Independence
- Esther George says the legal case is part of a broader attack on the Fed's institutional independence.
- She warns personnel choices will shape Fed policy and influence long-term decision-making.
Long‑Run Focus Is Critical
- George emphasizes protecting long-run decision-making from political pressure as central to the Fed's role.
- She notes the Fed's long-run focus has been relatively durable over the past century.
Focus On Data, Not Noise
- George urges Fed officials to ignore political noise and focus on economic data ahead of policy meetings.
- She expects committee members are concentrating on economic issues for their September decision.