BiggerPockets Real Estate Podcast Can Trump Push Jerome Powell Out of the Fed? w/WSJ's Nick Timiraos
Nov 22, 2024
In this discussion, Nick Timiraos, a reporter at The Wall Street Journal and Federal Reserve expert, dives into the complex relationship between President Trump and Fed Chair Jerome Powell. They explore whether Trump could pressure Powell and the implications for Fed independence. Timiraos addresses the risks of high interest rates on the economy, discusses potential future rate cuts, and evaluates the political dynamics surrounding the Fed's role. Listeners gain insights on how these developments could shape the real estate landscape.
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Fed Independence
- The Federal Reserve (Fed) operates independently, setting interest rates without government approval.
- This independence aims to prevent short-term political thinking from influencing monetary policy.
Criticisms of Fed Independence
- One criticism of Fed independence is its lack of accountability despite its significant power.
- Proponents of greater executive control argue that elected officials should have more influence over monetary policy.
Trump's View on the Fed
- Donald Trump believes he should have more control over the Fed, given its economic impact.
- Trump's advisors conveyed that he doesn't fully grasp the concept of Fed independence.
