Odd Lots The Growing Risk to Fed Independence That Wall St Isn't Watching
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Apr 1, 2025 Lev Menand, a Columbia Law School professor and author of "The Fed Unbound," delves into the critical challenges facing the Federal Reserve's independence. He discusses the potential repercussions of recent political maneuvers, specifically how presidential control could reshape regulatory frameworks. Menand highlights the alarming negligence of Wall Street in recognizing these risks and stresses the urgent need for a balanced governance structure to preserve economic stability. The conversation unveils deep implications for monetary policy, trust in markets, and the future of regulatory agencies.
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FTC Commissioners Fired
- Trump fired two Democratic FTC commissioners, who are now suing.
- They argue their firing was illegal because commissioners can only be fired for cause.
FTC and Presidential Power
- This firing isn't isolated; it reflects a broader push to increase presidential power.
- A popular conservative legal theory argues independent agencies are illegitimate.
Humphrey's Executor
- The FTC firing challenges the Humphrey's Executor precedent, which protects the Fed's independence.
- This precedent prevents firing without cause and is foundational for independent agencies.
