{"id":383939,"date":"2018-11-06T15:51:48","date_gmt":"2018-11-06T14:51:48","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/newswire\/trumps-war-on-the-fed-2\/"},"modified":"2018-11-06T15:51:48","modified_gmt":"2018-11-06T14:51:48","slug":"trumps-war-on-the-fed-2","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/trumps-war-on-the-fed-2\/","title":{"rendered":"Trump\u2019s War on the Fed"},"content":{"rendered":"
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October was a brutal month for the stock market. After the Fed\u2019s eighth interest rate hike on September 26th<\/sup>, the Dow Jones Industrial Average dropped more than 2,000 points and the NASDAQ had its <\/span>worst month<\/a> <\/span>in nearly 10 years. <\/span>After the Dow lost<\/a> <\/span>more than 800 points on October 10th<\/sup> <\/span>and the S&P 500 suffered its first weeklong losing streak since Trump\u2019s election, the president said, \u201cI think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy.\u201d <\/span>In a later interview<\/a> <\/span>on Fox News, he called the Fed\u2019s rate hikes \u201cloco.\u201d And in a <\/span>Wall Street Journal interview<\/a> <\/span>published on October 24th, Trump said he thought the biggest risk to the economy was the Federal Reserve, because \u201cinterest rates are being raised too quickly.\u201d He also criticized the Fed and its chairman in July and August. <\/p>\n

Trump\u2019s vocal criticisms are worrisome<\/a> <\/span>to some commentators, who fear he is attempting to manipulate the Fed and its chairman for political gain. Ever since the 1970s, the Fed has declared its independence from government, and presidents are supposed to avoid influencing its decisions. But other Fed-watchers think politicians should be allowed to criticize the market manipulations of an apparently out-of-control central bank.<\/p>\n

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Why the Frontal Attack?<\/h2>\n

Even if the president\u2019s challenges are a needed check on the Fed, it has been questioned whether he is going about it in the right way. Challenging the central bank in public forces it to stick to its guns, because <\/span>it must maintain its credibility<\/a> <\/span>with the markets by showing that its decisions are based on sound economic principles rather than on political influence. If the president really wants the Fed to back off on interest rates, it has been argued, he should do it with a nod and a nudge, not a frontal attack on the Fed\u2019s sanity.<\/p>\n

True, but perhaps the president\u2019s goal is not to subtly affect Fed behavior so much as to make it patently…<\/p>\n<\/div>\n

Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

October was a brutal month for the stock market. After the Fed\u2019s eighth interest rate hike on September 26th, the Dow Jones Industrial Average dropped more than 2,000 points and the NASDAQ had its worst month in nearly 10 years. After the Dow lost more than 800 points on October 10th and the S&P 500 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-383939","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/383939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=383939"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/383939\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=383939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=383939"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=383939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}