Viewpoint: Waller should openly oppose Trump's pressure on the Federal Reserve and safeguard central bank independence

BlockBeats news, July 6, Bloomberg columnist Jonathan Levin wrote that U.S. President Trump and his allies are continuously seeking to influence Federal Reserve decisions through personnel changes, including attempting to replace Fed Governor Lisa Cook and intervening in the selection of the Federal Reserve Bank of Atlanta president, in order to expand the influence of White House supporters within the Federal Open Market Committee (FOMC).

Levin believes that Kevin Warsh, considered a leading candidate for the next Federal Reserve chair, should publicly oppose White House interference, support Jerome Powell and Cook in completing their terms, and demand the White House withdraw from the selection process for regional Fed presidents. Otherwise, his future credibility as Fed chair and his influence within the committee will be undermined.

The independence of the Federal Reserve is key to maintaining stable inflation expectations and the credibility of monetary policy; ongoing political intervention could harm the stability of the U.S. macroeconomy.