US GOVERNMENT IS BEHOLDEN TO THE FED
We hear quite a bit today about the issue of Federal Reserve independence. The crux of the argument usually centers on monetary policy executed by the Fed versus opinions of politicians and others who want and expect something different, which they believe will provide more favorable results.
President Trump has been ardently vocal in demanding that the Fed be more aggressive in cutting interest rates. He also wants, and is encouraging, action that would result in a weaker US dollar. He believes that it would be good for American businesses. His reasoning is that a weaker US dollar would make American-made goods more competitive.
Whether or not the President is correct doesn’t matter for purposes of this article. What is important is that there is a wide difference of opinion between the Federal Reserve and its current policies (re: Jerome Powell) as compared to the wishes of the United States government (re: President Trump).