Top Official Calls For Federal Reserve To Stop Trump
A Former New York Fed President made concerning remarks regarding the Fed’s position in relation to the 2020 Presidential election. Bill Dudley, an economist who ran the Federal Reserve Bank of New York as recently as 2018, suggested that the Fed stop President Trump from re-election. Trump and the Federal Reserve have had a contentious relationship since Trump’s 2016 victory over Democratic Presidential nominee, Hillary Clinton.
Dudley called on his former colleagues at the Fed to not “enable the Trump administration to continue down a disastrous path of trade war escalation, or send a clear signal that if the administration does so, the president, not the Fed, will bear the risks – including the risk of losing the next election.
His strongly worded and somewhat authoritarian rhetoric appeared in a post first published on Bloomberg.
Dudley’s scathing appeal to the current Fed members to take action against the President’s re-election aspirations continued.
“After all, Trump’s reelection arguably presents a threat to the U.S. and global economy, to the Fed’s independence and its ability to achieve its employment and inflation objectives,” he wrote. “If the goal of monetary policy is to achieve the best long-term economic outcome, then Fed officials should consider how their decisions will affect the political outcome in 2020.”
Dudley also said that the Fed should “refuse to play along” and could “go further.”
Dudley’s irresponsible comments were quickly disregarded by the current Federal Reserve, who released, in part, the following statement:
“The Federal Reserve’s policy decisions are guided solely by its congressional mandate to maintain price stability and maximum employment. Political considerations play absolutely no role.”
Other economists, including head of global policy at central bank strategy at Evercore ISI’s Krishna Guha, called Dudley comments “counterproductive.”
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We fear that the opinion column … is likely to prove counterproductive for the current Fed leadership, which we are confident had no hand in the production of the opinion piece and has had to deny immediately that ‘political considerations’ play any part in policymaking,” she said.
While Trump’s historical lashings of the Federal Reserve leave some to be desired, depending on who you speak with, the Federal Reserve must remain autonomous in all capacities. To clarify, Dudley is not a current member of the Fed, however, his comments create speculation that the Federal Reserve may consider such nefarious activity, namely stopping Trump’s re-election, to be for the good of the people. And that’s terrifying.
The Federal Reserve already possesses too much power over our daily lives.
Trump is demanding that the Fed lower interest rates to help fight the trade war with China. Last week, Trump compared Fed Chairman Jerome Powell to China’s President, Xi Jinping.
We must consider the ramifications of such a request. During Dudley’s time as New York Fed President, was an activity such as interfering in political elections considered one’s duty? Would Dudley have made this request if he didn’t feel it was a plausible option?
Such rhetoric nearly qualifies as a call to war.
Author: Jim Satney
PrepForThat’s Editor and lead writer for political, survival, and weather categories.