I'm sorry, but there are but two general means by which the government attempts to affect the economy: Fiscal Policy and Monetary Policy. The Fed operates in the realm of Monetary Policy -- interest rates and its balance sheet of government debt. Fiscal Policy, on the other hand is in the realm of our politicians in the form of tax policy and trade policy.
Our illustrious Republican Congress provided a tax policy beginning in 2018 that amounted to an economic stimulus for the ages, while Tariff Man's trade war has dealt that a significant counter blow to the body that has stunted the world's economy and has the potential to bring it to its knees.
Perhaps the easiest and best solution would be to have the willfully moronic tariff war walked back? The US really doesn't need any more Monetary-side "stimulus" than we already got with the tax policy change.
2
The Fed claims that it is free to make decisions without political pressure. So at least signal no more interest rate reductions and consider that it needs to increase interest rates so that they have some leverage when the Trump recession takes place next yr.
4
Where are the adults? Yes, the Fed could hit back and they certainly have reason to do so, given the way that Trump has trashed them. But they are supposed to be acting in the best interests of the American people, just like Trump is supposed to do. It'd be nice if someone would remember that responsibility.
4
"I don't like Trump, so I am going to ruin the economy so we can get him out."
That's quite a position to take.
2
When a president runs amuck, falsely claiming, "I have the absolute right," Americans who see something should say something. Thank you Mr. Dudley for speaking out for the rest of us.
11
How is this different than Trump's behavior re the Fed? Does Trump have to state explicitly that he wants the Fed to join his campaign in order to provoke the same sound and fury?
6
“We’re human. We make mistakes. But we’re not going to make mistakes of character or integrity.”
Character or integrity...something Trump lacks.
8
Hang in there, Chairman Powell, your fellow Federal Reserve Presidents and Governors are behind you
6
I am afraid that there is merit in the idea that is advanced. It is the case that Trump is a unstable idiot, who flip-flops so frequently that there is no stability - essential for businesses to know when and how to invest. Do not consider this political, but pragmatic.
5
Trump politicized the Fed, blaming them for his trade war, resultant retaliation, and other erratic policies that diminish economic growth, in modestly raising interest taxes.
He has lambasted the Fed Chairman Powell for Trump's mistakes, pressuring the independent Fed to make monetary policy more stimulative to help his election efforts.
The independent Federal Reserve Bank is under no obligation to assist Trump's political efforts.
Developed economy central banks have been independent of administrative policy since the Bank of England more than three centuries ago, to avoid the specter of Zimbabwe - whose currency became worthless when coupled with fiscal policy.
Trump, as usual, talks out of both sides of his mouth. He claims America is experiencing the boom of all booms, with unemployment rates as low as in the late 1960s, and inflation stable to rising - above the 2% target for inflation stability.
There is no reason to fold under Trump's browbeating.
The Fed cannot address bad fiscal policy, from trillion annual deficits; double-digit tariffs, trade wars, broken supply chains; and erratic unstable administrative policy through monetary policy.
Trump is responsible for the global mess he created.
10
By suggesting the Fed "should wade into politics" toward engineering Trump's defeat, Mr Dudley engages in the chutzpah of elitists that they can manipulate reality. To act in any calibrated way that might or might not produce the desired negative economic result--much less political--is wishful thinking at best. To state this possibility only feeds the perpetual victimization and narcissistic narrative "The Great Divider" Trump lives on, that conspiracies are awash revolving around him.
Options theory would suggest hitting a bid, any bid, on Dudley's idea. The Fed has enough trouble using monetary policy to try to engineer the level of interest rates beyond about two years; using monetary policy to try to engineer the outcome of a presidential election AND the economic consequences of that election is a fool's errand of pretty infinitesimal odds of success. Go by a lottery ticket, Bill, and take a nap, maybe.
Well the fed and the Republican Party went out of their way to keep the Obama economy from being too successful.
7
There has to be a sane independent organization of economist/financial professionals to watch over our economy for the good of its citizens, and not a self appointed mindless real estate sales con man who starts a trade war and is driving this country to recession. Of course as a realtor Trump will be lining his pockets at the next G7 meeting held at his golf resort. The solution is to get rid of the source of the problem in 2020 and send him back where he came from.
10
While it is good that you mention William Greider's Secrets of the Temple, the context is a bit misleading. it is not about conspiracy theories (though I understand that calling it The Temple connotes a priesthood of policy makers), but rather how the Fed works and the successes of the Volcker era in battling stagflation.
1
The Fed, like so many others in institutional government, maintains a commitment to Marquess of Queensberry rules
while Trump and Repubs run roughshod. As maddening as this is, in my opinion the institutionalists should hold course, stay in their lane, and maintain their respect for the rule of law. The WORST offenders are the members of the Roberts Supreme Court, which has done more in the past 10 years to discredit the system than an obviously rogue president could ever accomplish. Unfortunately the justices are not on the 2020 ballot. Vote, Folks.
10
The gaslighting and stoking the fires of hate is what Trump does best. And now Trump's tweeter tantrum against the Fed and Powell will energize further the conspiracy theorists.
4
Dudley Bader Ginsburg. Apology to follow.
Fed should raise rates instead of lowering rates. This would provide no cover for trump’s trade wars nor allow trump to pay less money on his own loans. The plus side is that seniors will have more income from low risk investments. This would present reality to voters of trump’s incompetence in 2020 election.
7
I believe that President Trump attacks anyone or any thing that he feels is in opposition to whatever he wants to do.
One of his targets has been Jerome Powell, the Chair of the Federal Reserve. He has also attacked the Fed itself.
I understand that the Federal Reserve is supposed to be politically neutral and it focus is on the economy and its health but at some point, if the president forces it into a political situation, it should defend itself.
William Dudley simply pointed that out.
15
I do no see anything wrong what Mr. Dudley said. Trump is taking down the US economy and the country down into his swamp.
20
I agree with Mr Dudley. Trump is doing all he can to get the Fed to go against what it believes is best for America to get him re-elected. That is to say adjust interest rates to artificially boost the economy while trump wakes his macho man trade war. I say the Fed should do nothing of the sort and if it hurts trump so be it.
21
As much as I don't like Trump and anybody associated with him, it is not in the best interest of any American to let Americans suffer to teach Americans a lesson to not vote for incompetent people. To even suggest that those tasked with reducing the volatility of the American economy should let off the brakes and let it all spectacularly crash just to spite America is a suggestion just as morally bankrupt as anything Trump has proposed.
2
Not a good idea. It will just cause every president understandably to appoint a political hack and the Fed will forevermore be compromised.
A better idea is for Powell or his communications team to very strenuously, obviously and publicly push back at Trump's nonsense, directly. Powell is one of the most powerful officials on the planet. If he would tell Trump to butt out rather than blandly saying he intends to serve out his term and the Fed jealously guards its independence he would be sending the right signal to Trump, the markets and the world.
8
Our President doesn’t understand basic economics. He also doesn’t understand how the American system of governance works. Actually, he doesn’t understand pretty much anything one needs to know to be a decent President. He’s clueless and he has to go.
14
Mr. Dudley tries to speak truth to power and Republicans freak out. More people like Mr. Dudley need to speak out. Then perhaps some Republicans will start to understand that Trump is doing them harm, too.
16
The damage that Trump is doing to the environment is far worse than that of his bone-headed policies which have negatively impacted our economy.
4
This is incredibly dangerous. This gives Trump ammo to say that the Fed is politicized. We need the Fed to remain independent. We need the economy to be strong, no matter your views on Trump. Shame on this man.
6
At a time when the Fed is battling a lawless president intent on stamping his authority over all our institutions, Bill Dudley has damaged the reputation of the Fed with his mindless guidance.
He has provided fodder for conspiracy theories that Trump will promote.
Princeton should consider firing him for rank bad judgment. Make an example out of him.
4
Some of the comments suggest that their authors either didn't read Mr. Dudley's article itself or were too busy defending Mr. Trump and indicting the Fed to understand what Dudley wrote. First, Dudley explicitly states that he opposes the politicization of the Fed. However, he also indicates that Trump's ongoing attacks on the Fed have made its apolitical stance untenable. Thus, Dudley is saying that if the Fed is forced to be political, then it may need to consider how its "decisions will affect the political outcome in 2020." In other words, he's telling Trump and his cultish followers to be careful what they wish for, because they might not like the result if a politicized Fed acts to save the country (and the world) from an incompetent narcissist who doesn't care if he plunges the world into a major recession through his maladroit trade policies.
17
@UtahnI totally agree with everything you said, and I don't now what a maladroit is, but I know it's not good if it's anything like malady...is it an evil puppet?
@Sheila
“Adroit” means capable, even graceful handling of a pain ask or problem. “Maladroit” means Trump.
The Fed mandate is to encourage full employment and economic stability, giving consideration to all forces and conditions that influence those parameters.
Therefore, if the Fed finds that to fulfill its mandate it must counter the occupant who is actively tariffing and tweeting us into a crash, that is not political. That is a rational and functional fulfillment of their mandate. They don't get to pick and choose the threats. They only get to choose the design of their countering policy.
12
I am not sure why everyone is reading the Dudley’s opinion piece in this way. Having read the entire piece, I came away with a very different impression. He essentially advised that the Fed should consider carefully whether their actions could potentially affect the outcome (favorable or otherwise) in 2020 before taking any step. That sounds like good advice to me. The Fed should not be in the business of juicing the economy to help an incompetent administration in the run-up to an election. He said nothing about the Fed actively working to undermine Trump’s reelection bid.
16
"Mr. Trump has reportedly considered firing or demoting Mr. Powell in the past..."
I believe only Congress can do either one, Mr. President.
An honest mistake, I'm sure.
You see, Mr. President, although you appoint judges and the Fed chairman, they don't work for your benefit, they work for the American people. Only the people, through Congress, can fire them.
I hope this clears things up, Mr. President.
I'm glad we had this little talk.
17
How would that accomplish Powell’s stated goal of insulating the Fed’s decision making from politics? Taking into account the President’s views in one thing. Allowing the corrupt motive of harming the President’s reelection chances quite another.
What it would do is prove that Trump was right about the Fed Chairman all along.
2
“The Federal Reserve’s policy decisions are guided solely by its congressional mandate to maintain price stability and maximum employment,” Michelle Smith, a Fed spokeswoman, said when asked about the column. “Political considerations play absolutely no role.”
I guess that had Mr. Dudley said that Trump's reelection negatively affects the FED's ability to maintain price stability and maximum employment, it would have been OK.
3
So can we now stop the pretense that Fed decisions are made in a non-political vacuum?
But the best part is that Mr. Dudley thinks that a gang of economists should work to inflict economic pain upon millions of Americans and billions of world citizens because they disagree with Administration trade policies. Remind me of exactly when they were elected to run our government?
This is what the "Resistence" is and has always been. Insufferable is too mild a word.
5
@Barooby
The Fed often inflicts short-term pain to achieve long-term results, most famously in the early 1980s.
Should it be goosing the economy to achieve short-term gain if the long-term result is a disastrous trade war that inflicts far more pain?
5
The Fed has often been political - one remembers the fed holding off interest rate hikes until after the 2012 election for no discernible reason other than to help Obama hold off Romney. The column by Dudley takes it to another level, suggesting the Fed should be openly and actively working for and against politicians and political parties. Dangerous stuff coming from the Left.
2
@Chris
You think the Fed represents the Left? Bless your heart.
4
@Pundit
No, it was not smart because the Fed does not engage in politics by definition.
However, in tone it was propitious because Mr. Dudley was signaling to others that drastic measures are necessary, such as invoking the 25th Amendment.
Perhaps Republicans will come out of the woodwork and not be so craven in the last months of 2019.
7
And we expect the American people to have confidence in and respect our institutions?
Since the last recession we were told that the role of the Fed was to keep an eye on the unemployment rate and the inflation. As of now, both are still low, and according to many the best course of action for the Fed would be to do nothing.
There is always a recession around the corner. The question is when. The sure way to get there fast is to talk ourselves into one.
4
Having made all of the necessary disavowals of Trump’s methods and demeanor, longtime experienced China hands from our own government will often confess that they are pleased to see an American president taking a harder line with China. Not only has China consistently abused the rules and institutions of global commerce, it is adopting a confrontational security posture worldwide that is detrimental to US interests. Some economic decoupling is absolutely in order.
Let’s keep our nation’s broader good in mind even in the face of the inescapable vortex that is the 2020 election. Unseating Trump is not the be-all end-all of good policy. That the Fed should not attempt wade into that morass under any circumstances is obvious - statements like this former official’s are beyond reckless. But I’d go further - the Fed affirmatively should support this US Government policy initiative that’s long overdue, regardless of how fervently it (or The NY Times readership) wishes another president were overseeing it.
4
@John
There is no policy initiative. What would “winning” this trade war look like? What are the concrete results Trump hopes to achieve?
Before bankrupting our agricultural and aircraft industries, among others, doesn’t the President have a responsibility to articulate that?
Based on the showy nothingness that was the renegotiation of NAFTA, and the inability to devise any policies to replace TPP, the Iran Deal, or the ACA, who has any confidence in this Administration’s ability to achieve any goals at all?
3
I don't think the Fed has any power, anyway, to PREVENT Trump's trade war from harming the economy, so it seems like kind of a meaningless aside.
But it is still one that should not have been made, since it will give Trump the go-ahead to paint the Fed as irredeemably biased (their disavowal notwithstanding).
3
Sometimes it really does seem as if the elite lives in its own world. On what planet was that a smart/useful thing for Dudley to say?
11
Prople oversimplify the things that the fed has to consider to fulfill its role in stabilizing growth while managing inflation.
Sometimes short term stability is incompatible with long term stability.
Trumps trade policy is so erratic that a rate adjustment might intensify the damage in the long term by mollifying the impression of damage in the short term.
Because the president is unusually unable to put the economic health of the country ahead of his electoral calculus - it forces the Fed to factor his politics into its stabilization strategy.
5
As completely correct it is that Trump must be defeated, I cannot begin to imagine the FEDERAL RESERVE manipulating the world's economy as a tool towards Trump's defeat. Is that REALLY what this former Federal Reserve President said? Seems like everyone BUT the voters decide elections in this country these days.
8
@ManhattanWilliam
We the people voted Trump into office. I didn't personally, but enough of us did. Certainly no one forced us (them) to. It was a conscious choice. There's no getting away from that fact.
4
@ManhattanWilliam
He didn't say the Fed should manipulate anything. What he said was that the Fed shouldn't soften the economic blow for the trade war by continuing to cut rates. The Fed should cut/raise/maintain rates towards it's own goals. However, if those goals are at odds with the trade war, then what he's saying is that they should go ahead, even if it causes economic harm (because the Fed can't control Trump or his trade war)
3
Not everything that is said in public, on the record, is what happens in private. The official position is not always the actual position. Politics not part of the Fed's influences maybe official policy but maybe not the actuality. Who knows what considerations drive the decision makers?
3
The idea that monetary policy and political considerations are separate is about like say that church and state are separate.
Its there but not so obviously quantified.
3
Paul Volcker would not loosen the money supply when Ronald Reagan passed a massive tax cut. It led to a severe recession, but Volcker's stance helped break the inflation unemployment spiral.
The same argument can be made for how the Federal Reserve should conduct its policy. It is supposed to be independent of the political influence of both the White House and Congress. If the Republicans in Congress is unable to rein in the destabilizing actions of a Republican President, the least the Fed can do and should do is not to accommodate those policies that has serious negative impact on US competitive position in World trade in both the short term and in the long term.
12
The indignation over Dudley’s opinion is overblown. He’s a private citizen and can say what he wants. It’s obvious that the Fed won’t take his advice. They are responsible adults. Trump on the other hand has no qualms about manipulating the Fed for his own political advantage.
29
They just need to do the right thing. Trump is doing a great job revealing himself as the unfit, unqualified corrupt con artist that he is all by himself.
27
It's shocking to suggest the Fed has a role in politics, manipulating monetary policy to help or hurt candidates for office. If that's where we are I'm in favor of abolishing the Fed. Plenty of people have thought for years that a steady increase in the money supply in line with long term economic growth rates is all that's needed. Now, we have presumably reputable people hinting that it should adjust policy to help the electoral chances of the Democratic party. Democratic, indeed!
5
@Ronald B. Duke
That is, in fact, the opposite of what Dudley said. He said the Fed should not try to use monetary policy to accommodate the effects of a trade war under pressure from the incumbent President.
Chairman Powell basically said the same thing: monetary policy is not a good counterbalance to the President’s deliberate infliction of economic pain on our country.
4
Why do you assume the Fed would want to help Democrats? There are two republicans running against Trump in the primary. Certainly, anyone with a brain is against Trump running the US into the ground for the next 4 years -but that doesn’t make them democrats.
Trump's bombastic retoric & irrational and iratic behavior is the real drag on our economy. Every day he remains in the White house is equivlent to a 200 basis point increase in interest rates
10
Why would anyone ever listen to Trumps advice on the Fed policies? His history with spending and cheating and bankruptcy are well known. He wants to micromanage every aspect of the the government to our peril. When do we get to see the checkbook? A trillion in debt already, where's the money gone? Never trust a Trump with your money or your kid's, or you're country.
16
@karen
If only we could see the checkbook! The National Debt was $22.023 trillion at the end of June, $2 trillion MORE than when Trump came into office. As a candidate in 2016, Trump said that he could make the US debt-free "over a period of eight years." Yet the deficit for 2021 and each year beyond is predicted to be $1 trillion or greater, even without any more crazy tax cuts or insane spending by the Narcissist-In-Chief!
4
Something must be done and this article offers a glimmer of hope. BBC news just reported a global ban on taking baby African elephants and selling them to zoos at a meeting in Geneva. Only two countries voted against it, Zimbabwe and The United States.
10
If our only way out of this mess is to ensure a recession, we have bigger problems than Trump.
5
Every time a Trump opponent suggests a corruption of the system to fight Trump, it helps Trump.
You don't fight a corrupt president by corrupting Fed policy.
You fight a corrupt president by naming and explaining his High Crimes against the Constitution.
You fight corruption with just laws enforced equally among all citizens, even the president.
7
The Fed, lead by its chairman, should be allowed to perform their duties. Who do you trust more, the Fed or Trump? The ejecta the President spews is intended to shake people's faith in established institutions in favor of his divine instincts. In regards to integrity, on a scale of one (spurious scoundrel) to 10 (reasoned manager), the Fed is a 10 and Trump is less than 1. In terms of Mr. Dudley's ideas, the Fed should go into the, "Him? Oh, he's not with us." mode.
1
What OUGHT we expect in times like these?
People of good conscience must speak out.
William Dudley recognizes the "threat" that Trump is to just about everyone and everything, and chose to voice his opinion.
He's essentially a knowledgeable private citizen, who's concerned that this fledgling, ignorant autocrat is driving us, at blinding speed, toward the precipice.
Let's hope there are more voices like his in the coming days, weeks and months.
11
The Fed should do the right thing and act in the interest of the American people, not a pyromaniac who’s destroying the country and crashing the world.
5
thanks for helping A LOT Trump make his anti-Fed case, mr Dudley
5
I despise Trump and recognize his danger to the US, but the Fed should not use his tools to affect political outcomes. That sets a horrible precedent that can work both ways.
However, nor should he use his tools to subvert the danger of Trump's terrible economic policy. If the economy blows up because of Trump's trade strategies, the Fed should not feel beholden to undo it.
3
Whatever the Fed do, DJT will blame them for any downturn and he will bask in the glory of any uplift no matter what drives the outcome. But perhaps that is what all presidents do. Try to win wars and let the economy work itself out despite their actions. The question is whether this is a (trade) war America really needs. If the President chooses war that leaves serious casualties at home, he like any President will ultimately be judged unfavourably. Wars are serious business.
Please. You don't reestablish vitally important norms by violating them.
5
Fed should stick to its mandate to manage the economy (or more precisely, keep prices stable and keep unemployment low). It should ignore the rest. It is not the Fed's job to determine if the President should be engaged in economic or trade wars with anyone. If trade war leads to higher or lower inflation, it should adjust money supply/rates appropriately.
By the way: the media has really overblown the implication of tariffs on Chinese imports. The tariffs would represent $40 or $50 billion in a nearly $30 trillion economy. The constant drumbeat of "trade wars" is actually more harmful to the economy than the actual tariffs.
4
@RBSF "The constant drumbeat of 'trade wars' is actually more harmful to the economy than the actual tariffs."
Tell that to the steel industry or the farmers who make up the 15% increase in farm bankruptcies in the last year.
We’re in a new national nightmare that’s not close to being over. I fear it’s gonna get even worse before it gets better, if getting better is even possible.
I’m 66 years old with a lifelong interest in government. In my youth, I hated dictatorship of any kind. Now I see a president who clearly loves dictators and seemingly wants to be one.
That is — or should be — a nightmare for all of us.
21
First, it is absolutely correct that Trump is the greatest threat to global economic stability that we face.
BUT, it is also destabilizing to even suggest (AS TRUMP HAS ALSO DONE) that Federal Reserve policy should be driven by elections. The Fed needs to ignore Trump's existence as much as humanly possible, while taking account of the volatility and destruction he creates.
15
Horrors! Using Trumpian tactics against Trump. Unthinkable? Shouldn’t be.
Beyond that, the “right framing” would be to argue the Fed should not provide cover for disastrous political decisions. There is nothing “political” about that.
And since Trump’s trade war “strategies” are “disastrous political decisions” (just ask American farmers or the companies that sell products to them), there is absolutely no reason for the Fed to help enable them by providing the easy money cover that allows Trump’s “disastrous political decisions” to continue for longer than they otherwise would.
If the US Treasury stopped printing money, the Fed would not be expected to “respond” and help support the madness of the decision. Similarly, there is no reason for the Fed to support the madness of Trump’s trade war fantasies (“so easy to win”) by lowering interest rates: a step required only because of Trump’s delusional trade war actions.
Will the Fed’s not going along with Trump’s “disastrous political decisions” be painful for all of us? Yes. But “going along” will only delay the pain and likely make it much much more worse.
15
Tariffs raise the price level for the affected goods (even US producers will raise their prices because they face less competition). The Fed has a mandate to control inflation. So it seems consistent with the Fed’s mandate to keep interest rates a bit higher to prevent the inflation that would otherwise result from the trade war.
2
@HO So maybe tariffs will work to counter the deflation that everyone fears! Unfortunately, this magical thinking will not work. Tariffs will have a very small (less than 0.1%) impact on inflation.
@HO Increased prices due to increased taxes isn't inflation. The Fed has no need nor mandate to intervene when the prices go up due to poor economic strategy.
1
“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.”
He is absolutely correct.
14
An action that way, not only would damage Trump's re-election, would also trigger an economic megarecession already begun.
The public debt of Trillones, no longer has funds to reactivate the economy with a classic intervention of the state, Trump cut the tax revenue generated by large corporations. 📉
2
Would he prefer President Bernie Sanders and a like-minded congress, which would raise income tax and capital gains tax rates to such high levels to pay for "free" healthcare and college, and the $14 trillion Green New Deal, that the stock market would crash like it's 2008?
3
Crickets, then laughter. You’re a lost cause if you can’t recognize that Republican presidents crash our economy. Bernie invests, Trump spends.
5
Time for you to take a long, honest assessment of who you voted for.
2
There are things that are okay to think, and okay to share with your friends, but which ought not to be said in public because doing so will be very counterproductive. By the time one has reached a certain stage of adulthood, one should be able to recognize these things. It is unfortunate that someone of Mr. Dudley's achievements could not do so.
6
The Fed shouldn't influence the election. And it certainly should not yield to political pressure to cut rates. If inflation and employment are both at a sweet spot, the Fed doesn't have compelling reasons to cut rates.
The Fed should even consider raising rates, because it has to recharge its ammunition for future rate cuts should the economy sours. Before both prior recessions the rates were at least 4%. It is now at 2% after a decade long expansion.
10
If saving the American economy from near-certain destruction due to the personality aberrations and their resultant irresponsible decisions by its president is politicizing the Fed, I'm all for it.
9
I hope the Federal Reserve acts on principal and integrity and not on political motivation for or against Trump. Trump may come and he will go but the integrity of the Fed will outlive Trump and the Fed must remain beyond reproach and our country must be its primary importance and only master.
11
Thank you, Mr. Dudley for providing the GOP 2020 ticket with yet another Deep State source of advertising.
7
Lol. Deep State. What a joke. You got to love the lingo.
4
I remain convinced that the FED's raising the short term rate a full 100 basis points in early 2000 with no inflation in sight was a political act designed to throw the economy into recession in time for the election. It worked, and Al Gore lost. If the FED could do that in 2000 giving us the second worst president in American history, it would seem they could do it again in 2020 to help get rid of the worst ever.
31
@rawebb1 Al Gore lost because he was a terrible candidate who did not have a message, was a victim of the Nasdaq crash which was the actual cause of the recession, and was saddled with the legacy of Bill Clinton. Despite his alleged popularity, Gore and especially his wife Tipper thought he was toxic, and did not make him part of the campaign.
So the fed had nothing to do with it.
@Erik
To remind both rawebb1 and Erik of the facts, Al Gore won the popular vote by a half a million, and it is debatable whether he lost Florida by less than 600 votes out of 6 million cast because the Supreme Court stopped the count.
Interest rates climbed far higher during the 90's and there was productivity and prosperity.
It is a contradiction for Trump to say the economy is booming like never before, but we desperately need an interest rate cut. Trump is politicizing and brow beating the Fed Chairman, in his usual nonsensical way.
Read the actual article by Dr. Dudley: stay out of politics, rise above the fray, do your job, attend to the dual mandate. Sound advice that has been misunderstood.
Regrettably, more senior leaders do not state the obvious: Do the right thing. Do your job. Pursue your mission. Don't play games of appeasement. Don't surrender to intimidation.
Thank you, Bill Dudley.
30
If, as Fed spokeswoman Michelle Smith states, the Federal Reserve’s mandate is to “maintain price stability and maximum employment,” then her claim that “political considerations play absolutely no role” is absurd. Of course politics plays a role in prices and employment. Mr. Dudley’s point deserves close consideration.
14
@Warren Wilson
You are conflating two separate things, Warren. The entire reason that the Fed should be independent is for them (in some dream utopia) to make decisions based upon their price and employment targets - regardless of whether the economy is good or bad for any political party. That's the whole point.
If they do that, politics is not playing a role in prices and employment, at least in the factors the Fed can control.
Conversely, prices and employment obviously play a roll in politics. But the idea is for the Fed to not concern themselves with that.
3
If the Congressional mandate is to maintain price stability and promote maximum employment, then it's entirely rational (if not essential) for the Fed to adopt policies designed to decrease the likelihood of DJT's relection.
19
Is Trump really planning to privatize all the National Parks to help balance the budget? And, does McConnell support the effort?
8
@Nancy Werner Hi, Cadet Bone Spurs here. FYI - No, first jack up entry fees. Then reduce staffing and defer maintenance. Still need to make a break through on expanded fracking, drilling, and copper mining. All those resources being ignored. What a waste. Time to invest in basic industries. Mining, refining - got to get Rudy to work on that stuff. Wonder if I should bring Rosemary Vladic on board with a Fed appointment. Think I will have Jared K. sound her out.
3
@Nancy Werner Trump will privatize anything he can get his hands on. You can bet that he and his 1% cronies have their sights on our cherished national parks and are chomping at the bit to buy them up.
Former President of the New York Federal Reserve Bank and Chief Economist of Goldman Sachs, Mr. Bill Dudley, is absolutely correct.
Were the current Fed Chairman Powell to truly consider the factors holding back the American and global economies from thriving. undoubtedly he would see that a change of 25 basis points in the Fed funds rate is nothing compared to changing administrative policy constructively.
Trump has been a disastrous anchor on American and global growth. Trade wars, nativism, racism, and despotism will not cause growth to flourish.
His increasingly erratic, lose-lose policies meant to pay homage to his Russian master must be replaced with stable American leadership in concert with our democratic allies.
Trump has crossed every line of decorum, politics, decency, and civility. He was put in office by the enemies of America.
The Federal Reserve Bank is an independent institution in this county, like central banks in every other.
If the Fed leaders were to be so enlightened as to look at the root cause for economic rot, and not just use the limited devices available to them to address economic and monetary issues, they would find monetary policy so much more powerful.
Dumping Trump would be the best remedy to stave off a recession, and restore competent leadership for generations. It is the duty of every American to save our democracy and freedom, as Washington, Lincoln and FDR did in their generations.
50
@David Parsons
PS It is this corrupt administration that waded into independent monetary policy with abusive and foul language targeting the Federal Reserve Chairman.
They cannot speak on this sacrosanct topic having gone where no decent president ever has.
1
The Fed is set up to foresee the future, which is impossible. Do you want them to take political considerations into account? They affect the future, so of course you do, but they can’t, and won’t, and shouldn’t. It’s a conundrum.
4
While a nice idea, it’s the kind of thing best said with a wink and nod, rather than with an op-ed in major news outlet. The appearance of impartiality is just as important as impartiality itself, especially if the Fed wishes to avoid being a campaign scapegoat. Ironically, by saying it aloud, Dudley just undercut the effectiveness of his own proposal.
9
Maybe not, Steve. Dr Dudley raised a clarion call to all to do the right thing. Complacency in the face of evil requires all of us to speak out. Winking and nodding will no longer be enough. These are the risks patriots must endure.
3
Trump raises tariffs, which causes the economy to worsen, which causes the Fed to ease monetary policy, which allows Trump to further raise tariffs. Repeat, etc, etc, ...
This is the cycle we’re in, if the Fed ignores the fact that by easing it enables Trump to further raise tariffs. If the Fed breaks the cycle:
Trump raises tariffs, which causes the economy to worsen, the Fed does not respond, and Trump cannot further raise tariffs without tanking the economy.
Breaking the cycle may actually be more effective in achieving the mandate than enabling Trump to raise tariffs ad infinitum.
26
It’s the job of the grownups at the Fed to float above the noise (as difficult as that might be) and do the right thing(s) according to their long-established mission.
I have confidence they will do so, despite the attacks. They represent our financial system, and need to portray objectivity and purpose.
14
What about the Fed's statutory mandate? Does that include favoring one political candidate over another? Or do these ruler-elites even care?
3
Allowing the consequences of Trump’s trade, tax, immigration and international relations policies have their impact without interference from the government—isn’t this the free market approach Republicans profess to believe in? Protecting Trump from the consequences of his actions is covering up for him. It only encourages him to continue with his impulsive, destructive conduct.
17
@Margaret
The Fed should do whatever they would do given the economic indicators, not political indicators.
5
@McGloin
The economic indicators are resultant from the terrible political policy of breaking up global supply chains, imposing double digit regressive taxes on the public in the form of tariffs, erratic and unstable policy, and favoring despots over democratic allies.
Monetary policy cant overcome all of those negative factors with a 25 basis point cut. Trump started politicizing the Fed, the Fed need not respond to his rants.
I used to get the New York Fed's email news during Mr. Dudley's term at the helm. It read a bit like a propaganda letter for the President of Berzerkistan: "President Dudley convenes a conference to fix the economy...cures Boy Scouts of scrofula...walks across the Hudson to save Sully..."
I'm not too surprised that he retires and kind of misses the hype and so generates his own. He's not wrong, but some ideas are too true to be good.
6
@PaleMale
He is wrong. You can't fight Trump's corruption with more corruption. That only helps him destroy the Constitution.
1
Sounds like it would be difficult to prove, but now that the cat's out of the bag you can rest assured that someone will be watching the Fed's every move. We live in a time when facts and evidence mean nothing, and shoot-from-the-hip, fake pronouncements from the WH carry far more weight than they should.
9
Utterly unprofessional and damaging to the Fed no matter what you think of this President.
22
To pretend that “political considerations play absolutely no role” in setting Fed policy is nonsense. It is simply not the case.
8
I have no problem if the FED stays out of politics, which also means no unwarranted rate cuts to compensate for the Economic Ignoramus in Chief's attempts to tank the global economy.
Trump is screaming for a full point cut in interest rates to prop up his sagging popularity and avert possible recession as a result of his "easy to win" trade wars and economic mismanagement.
I hope the FED will indeed stay out of politics, and not cave to Trump's demands to use interest rates as a political tool.
36
I agree with William Dudley because desperate times require desperate measures. Muller didn’t get it, Mr Dudley does.
26
@Eraven
Mueller got it. Mueller explained it in legalese. It was the job of the press and democrats to translate it to plain English.
Mueller said that Trump committed numerous Federal Felonies and could be indicted for them after leaving office, but "the Constitution has a process other than the criminal justice system to formally accuse a sitting president." Mueller accused Trump of High Crimes and referred them to Congress for impeachment, so corporate media and the establishment Democrats said it was boring. It was as if they expected Mueller to dance in the table with a to hat and cane.
Meanwhile Trump attacks the Constitution all the time, like when he calls for political violence without due process.
Dudley is wrong. Trump is attacking the Constitution and the laws written under it. Corrupting the law to fight presidential corruption is like putting out a fire with gasoline.
I think the Fed needs too be reformed. We need to get global banks out of it, and grow the money supply for We the People who actually own that money.
But the Fed is suppressed to be less political not more political.
1
Mueller blew his chance: he hid behind legalize. Dr Dudley spoke clearly and courageously. The stakes transcend half-measures.
1
I read his opinion piece and I think it's being misreported. His point is the fed has to keep its powder dry for real emergencies, and if they blow it covering for the artificial trade war then there won't be anything left for real problems. It's legitimate; they're supposed to be thinking not just about the current state of the economy, but also about their ability to protect it in the future. This isn't a political piece.
124
@M.
If you are correct that that is his argument, then I agree with you, that we should wait to lower rates for all actual emergency.
Corrupting the Fed to help Trump or to hurt Trump after both bad for the Constitution.
Taking all of the economic factors into account to make Fed policy is not corruption.
I wrote same opinion in response to other articles dealing with interest rates and received no attention. Sure he’s a former FED official but what I wrote is right on.
In fact we should be slowly ever so slowly raising interest rates.
Business confidence would eventually rise when these slow thinkers become aware that we would have a real weapon to counter the inevitable next recession. Meanwhile people depending on interest income, especially retired elderly would benefit.
Raise interest rates! Going up against Trump will expose his impotence some only Melania is aware.
1
Please read Dr Dudley's article at Bloomberg.
3
Trump's trade wars may hit a sour note, three years into this horror show, for the conscience-free, true. But the rest of us, the ones struggling to breathe while witnessing the "carnage"? That would be the majority of the country, we rise each day knowing full well that Individual One was not even acceptable to become a candidate. The REPUBLICAN PARTY is 100% responsible for this drama, trauma, a d damage.
16
Oh, wonderful, now trump's got this country fighting itself/willing to sacrifice itself to prove, what, a point?
Getting a little tired of all the "winning," Mr. "President."
In fact, somehow it seems like Losing, to me.
At least the rich folks got their tax cuts.
12
Dudley, the Goldman guy who bailed out his friends in 2008?
Way to one-up Trump’s counterproductive, buffoonish criticism and undermine the credibility of the institution you were supposedly serving.
4
Dudley only said out loud what a lot are thinking privately: how best to put out the dumpster fire.
36
Questioning the wisdom of these remarks which will surely serve to give more fodder in the litany of pitible accusations against the fed and everybody including their maiden aunt -as the cause the President's policies to fail or...to fail...
2
Good for him! We're not in "normal" any longer. The "president" is attacking the Fed in an absolutely "not normal" way... He's the one who took the gloves off. Let him get a bare fist back at him (metaphorically speaking).
34
Since we have an abnormal situation with an increasingly abnormal President, maybe not a bad idea.
18
What a novel and rational idea:
Putting the long term economic needs of the United States of America and World above the needs of the megalomaniac, Mr. Trump.
176
This reminds me of HAL in 2001 deciding to eliminate the two astronauts for the good of the mission.
1
The Fed has just two Congressional mandates - stable low inflation and stable low unemployment. If they consider anything else then perhaps those conspiracy theories would turn out to be justified after all.
7
Dudley needs to keep his opinions to himself. The Fed has spent decades building up the reputation of being apolitical, nothing can be more damaging than the perception that they are out so influence electoral outcomes. Powell has done an excellent job of being the adult in the room despite having to constantly deal with a petulant child of a president. He doesn't need former underlings undercutting him and compromising the credibility of the Fed.
Dudley should know that the mandate of the Fed is not to achieve the best long term economic outcome, it is to simultaneously pursue contained inflation and low unemployment. No one has ever empowered the fed to pursue anything outside of this mandate and, in any case, the Fed trying to tip the political scales would be poisonous to its credibility and ultimately undermine economic growth.
19
@Dave
Don't forget that Dudley is a private citizen now and does not speak on behalf of the Federal Reserve. As such he has the right to say whatever he wants.
6
@TT he has the right to say whatever he wants, doesn't mean that it isn't irresponsible. His comments end up in the New York Times whereas yours and my comments at best end up in the comments section of the New York times. He has that platform because he used to be the president fo the New York Fed. That position matters even after one's tenure ends.
Look at Barack Obama, consumate professional and good citizen whether you agree with him or not. Donald Trump ravishes his legacy and insults his friends daily, but you never hear a peep from the guy. It's because he understands the power of his voice and the damage it could do to the institutions and country he loves.
IF IT IS INDEED THE CASE That the Federal Reserve Board's decisions must exclude political influence, then it is still justified for the Board to describe objectively factors that may undermine US economic stability and strength. When the stock market drops markedly after Trump makes certain statements, it is HE who is guilty of attempting to abuse his authority as "chief executive" by engaging in numerous instances of abuse of power by attacking the Fed's policy, in order to bolster his number in political polls. If the principle of equal justice under the law is still viable, then Trump must be called to account for his abuse of power vis a vis the Federal Reserve Board.
28
When have we ever had equal justice under the law? This can be compared to air travel. There’s first class and then there’s coach.
There one type of justice for the rich and powerful and white and another for the “ others.
Wow, what an interesting conundrum for the Fed. While I'd love them to plant trump in the ground, the mature me hopes they stay above the political fray for the future consequences of not doing so.
12
@J Darby That is what the Fed has been doing -- and it is driving Trump crazy, as he wants them to act upon HIS wishes instead. Trump did this -- asking which was the "bigger enemy," Powell or Xi. Dudley is a FORMER Fed official, and he spoke his mind. I think that is still legal in Trump's America.
1
When I was a child, I had a friend who had a terrible sweet tooth. He'd sneak candies and sweets, and then wouldn't eat his meals. His exasperated mother finally decided to try an experiment. She said he could eat all the sweets he wanted, but just couldn't have regular food. My friend thought this was a great idea for about two days, at which point he begged his mom for a real meal. That cured him of his sweet tooth.
In my darkest, most malign moments, I fantasize about giving President Trump everything he wants - setting the Fed's interest rates as he sees fit; giving him all the money he wants for anything he wants; forcing officials out of office he doesn't like or even jailing them; shutting down critical media enterprises; locking up immigrants of all kinds; giving himself military parades and having all government business done at Trump properties; and so on. Never say no to Mr. Trump's ever-changing whims; do everything he wants when he wants it done. And when the American public and the world scream for mercy from the ensuing chaos, say "No, I'm sorry, you need to eat more sweets."
Of course, I know this is a terrible, terrible idea, and that countless innocent lives (not to mention the entire planet) would be ruined by it, as has been true with every authoritarian leader who has gotten everything he wanted. But sometimes I think the only thing that will cure people of Trumpianism is to give them exactly what they want, carried to its logical conclusion.
71
@jrinsc this is awesome. Thank you
5
@jrinsc
I hope Americans wake up before.Trump abuses his emergency powers to cancel elections and suspend the Constitution.
3
It’s not s terrible idea. It’s a great idea. The damage done would become obvious early and with Trump gone would be easily reversed.
The damage s continued Trump
agenda is doing may be permanent or if not very long lasting.
But dear Mr Poster a better analogy than candy would be opioid. It feels so good and then destroys
2
Their allegiance should be to America, not to Trump. Perhaps the NYT should consider whether it is ethical to publish dissenters names, when Trump uses such strong and hateful rhetoric. Our country will not protect the lives of the innocent at the expense of preventing a few violent gun enthusiasts from enjoying their military style weapons.
9
I believe the Fed Chairman serves at the pleasure of the President and the whole Federal Reserve is just a branch of the Exective. Trump could abolish it any time he wanted, couldn’t he?
1
Nope. Fed Presidents and Governors are not subject to presidential dismissals.
12
@Jonathan
Nope. Nice try. Research that.
7
@Jonathan
Nope!
7
If the senate (Mitch McConnell) was doing its job, this article would never have been written.
54
@Cindy
Why's that? Pelosi in charge of impeachment. I suppose it's your side not doing its job because Democrats in the House are worried that a failed impeachment is worse for their chances of reelection.
How is putting party ahead of country working out for your side now?
@Jason W
Of course the impeachment is going to fail--the Senate will never impeach. So, Trump will still be there, with his deranged base becoming even more enraged than they already are.
There's just no point to it.
Trump: Jay Powell is the enemy of the people.
The People: “Individual 1” is the enemy of democracy
80
This stupid but dangerous statement simply reinforces the suspicions of many about the “deep state” political think. Attempt, by any means to interfere with the Administration thereby throwing out the current occupant who the “elite”
believe to be unfit to govern.
Very troubling!
4
@Trump called his own appointee, Powell, the enemy... no deep state there, just deep paranoia.
12
@TL
Duly elected? That’s a stretch.
13
Oh, boy - I'll bet the Trumpist Twitterverse is just loving this.
If anyone in the Trump base didn't already believe "the system is rigged," here we have a former Fed member suggesting (sarcastically, I hope) that the Fed should act, in direct contravention of its charter, to harm the economy - in order help get a sitting President out of office.
I just hope Mr. Powell continues to be "the adult in the room" - Mr. Dudley certainly isn't.
6
The Fed must remain apolitical, even while Trump is president. It is simply too important an institution to take sides in an election. We need it to function long after Trump is gone.
Having said that, the Fed does not have to bailout stupid trade policies either. The Fed will be on a slippery slope if it tries to combat trade woes with monetary policy.
Mr. Powell should begin making that point clear to the public and the president, tweets be damned. He needs to explain that no monetary policy can compensate for counter-productive fiscal policies, be they trade, tax cuts, or deficit spending. All parties have a role to play in our economy. Trump and Congress need to be accountable to the ones in their bailiwick.
22
The only answer to this moronic chaos is to hold the sad man Trump accountable to the public he is meant to serve.
3
This is the Bill that I knew and admired. Good job buddy!
7
@Blunt
If you're applauding him having sullied his reputation, I'm not sure you're much of an admirer or buddy of his to begin with.
Well trump brought them into the political arena, their decisions have to reflect that. Do they keep enabling him or let the free market respond to his trade war.
9
@Jacob
Trump also routinely brings in the 9th Circuit Court of Appeals in the political arena. But those judges have enough intelligence to keep their mouths shut rather than risk damaging the appearance of impartiality of the institution they serve(d)
4
@Jason W
What are you talking about, he is constantly saying the 9th Circuit is impartial and a lot of his followers believe him.
I read Bill Dudley’s column. He is correct to argue that the Fed should not bail out Trump’s erratic policies (e.g. reduce interest rates to stimulate the economy that heads toward recession because of an ill-considered trade war). He goes too far to suggest that the Fed might influence an election intentionally. The only time that was done was under pressure from Nixon to get himself re-elected (triggered the stagflation that plagued the 1970s) and by Greenspan (to get George Bush elected in 2004). That led to a global market collapse just two to three years later. Better we suffer the economic consequences of incompetent economic policy of today’s Republicans than have the Fed create a worse one.
23
While it is virtually impossible for the Fed to not have a impact on presidential politics with every decision it makes, the appearance of political impartiality is paramount for the institution’s reputation and, ultimately its credibility. It’s a bit of modern American Kabuki, and it must be nigh impossible in the Trump era with non-stop bombast from a seemingly inept and frequently incoherent POTUS, but I would urge the current members to stay the course of non-partisan, relatively apolitical decision making. Some institutions need to be credible, and it sure ain’t the White House and it sure ain’t the Congress and it’s getting to be less and less the SCOTUS.
11
good for him. the truth is always hard to handle.
8
What Mr. Dudley is suggesting is not radical and the FOMC would be remiss to not consider this line of reasoning when they decide whether to change interest rates and by how much. Failing to acknowledge the impact rate changes have on Trump's careening trade war escalations would be tantamount to burying their heads in the sand and pretending that they're working with a different president at a different time.
41
@KG
Their job is to shield the economy from inflation and stimulate jobs. Nowhere does it say that they must make their decisions on whether or not it will help influence the outcome of an election.
5
@jason: This guy is no longer a part of the feds. He works at Princeton. Reading more than the headline seems to be a big deal.
1
@KG Remember that what is considered goes into the minutes, and the minutes are public.
The Deep State is becoming unhinged, and is now running right out into the open with Op-Eds and flailing attempts to undermine a duly elected President. Their actions confirm everything Trump had told us. The bureaucracy is a wholly politicized arm of the Democrat Party, unaccountable to the citizenry.
4
Or....
Trump is an unhinged President that our democracy is ill equipped to handle except through the electoral process. Therefore the institutions critical to our well being are called upon to exercise their patriotic duty to harass and undermine this administration through its greatest vulnerability... The economy which he had inherited but proceeded to destroy with an ill advised trade war, tax cut and global instability caused by his growing madness.
23
@TL
The Deep State also faked the moon landing from their base in Roswell (where they protected from fluoridated water) and their main office is on the Grassy Knoll.
9
The conspiracy minded right wing, who are so off reality that they conjured birtherism and pizza gate, are still in the throws of a major fugue.
Trump is solely responsible for burning down the economy and using the Fed as the fall guy.
News flash: the Fed is not the bad actor in this latest Trumped-up shell game.
2
Those that claim that the Fed needs to stay above the fray need to remember that the comments are from a FORMER Fed official, and not an existing one. Freedom of expression should allow all private individuals to freely express their personal opinions. The comments are not offensive so not sure what the hullabaloo is all about. Please read his actual opinion piece as the argument makes logical sense.
156
@Jason W. What will your opinion be when Trump starts tweeting daily second guessing the next president? It’s a pretty safe bet to say he will.
25
Dude, you obviously haven’t read about retired (and now deceased) Justice Stevens being highly critical of the Supreme Court. You should really bone up before making comments that are not accurate.
23
@Jason W
After his retirement, Justice Stevens voiced his opinions and regrets.
3
That would be extremely irresponsible of them no matter what the reason.
2
This is completely and utterly dangerous, unethical, and uncharted territory.
Dudley's Fed tenure was marked will a VERY accommodating policy (i.e. bailout) towards banks, insurers, asset managers, private equity firms, and hedge funds. He oversaw record low interest rates during all 8 years of the "Obama recovery" that all but decimated the returns for cash savers / retirees who relied on interest income.
Could one could argue he helped the Fed oversee a very lax oversight of the Obama White House's financial plans while helping ensure that Obama himself slid toward easy reelection?
That would have sounded far fetched yesterday, but not anymore today.
Thank you, Mr. Dudley for giving Trump and his supporters the fodder they need: there is a Deep State at work against him and his policies.
The Federal Reserve has a mandate composed of maintaining price stability and full employment. Nowhere in its job description does it say "let's set policy in a way to prevent a President we dislike from somehow getting reelected."
5
@Jason W
Yes, the Fed policy is for price stability and full employment - over the short AND LONG term.
Are you saying that the Fed should not have lowered interest rates after the crash of 2007? That Hank Paulson and the rest of GWB's crew should not have started the bailout process? Herbert Hoover would be proud of you.
5
@Jason W Ummm, yeah, Mr. MAGA if "Deep State" is synonymous with"First Amendment Rights".
2
Well, Trump has waded into Fed policy, an independent organization from political parties, so why not reciprocate? He has done nothing but harm the institution. Who else calls his own appointee an enemy??
58
@PeterH
We need to save the institutions of Our Republic, not help Trump trash them.
(I would actually like to see the Fed reformed, with laws written by Congress and signed by a president. That is not what Dudley is talking about.)
1
While it is improper for the Fed to formulate policy in order to punish Trump, it is equally improper for the Fed to formulate policy to support the Trump/Navarro insanity. If we have a recession because Trump hasn’t a clue, then so be it. Maybe the base will understand what they’ve wrought. You can’t fix stupid, not even if you’re the Fed.
225
This story brings me joy.
16
The Fed should NOT be cutting rates. Long-term rates are already near the lowest in history, and the idea that even lower rates, even going negative like they are in Europe, will boost the economy is simply wrong. This will only punish savers even further. In Europe rates have been zero or negative for a decade and they are still headed toward if not already in recession--because of Trump's trade war.
Let's state it simply: The president is a moron and his trade war is destroying the world economy. Bringing rates even lower than their already pitifully low levels will not change this and will not help anyone. In fact, there is a good case to be made that with rates getting ever lower or even headed to negative territory, rather than stimulating more borrowing/lending, will only force more saving because of the impossibility of actually earning a return on savings.
Stop punishing savers!!
133
@J. Yes. If interest rates were a little bit higher, lots and lots of older people with savings would spend more and retire sooner leaving the job market open for younger folks to enter and stimulating the economy.
10
@J.So agree.
2
Here, here! From a retiree that values your comment regarding interest rates on savings.
I put a lot of the blame on the Republicans for not silencing and shaming their leader and letting him get away with making statements, like, Mr. Powell is an enemy of the United States. The vile that spews from the WH is more than a disgrace but their total abdication of duty to country and an unfettered willingness to let him continue to gas light is even worse.
356
@TripleJRanch Amen!
12
@TripleJRanch
Yes, the Party of Trump is trying to corrupt the Constitution from the Oval office.
This is exactly why corrupting the Fed is the wrong way to fight Trump. Corrupting laws written under the Constitution only helps them attack the Constitution.
The way to fight a corrupt president is to protect the Constitution by explaining that his attacks on it are High Crimes.
5
@TripleJRanch Who controls the complicit Republican leaders? Your uncle-in-law, your neighbor, your client on Monday morning. It’s a representative democracy and the people are the source. If the people who are represented by these leaders don’t care, then why should their leaders?
Not saying that’s right. But it’s reality.
4
These are not ordinary times. An ignorant clown captains our ship of state and the rest of us have to do whatever we can to mitigate the damage. I want to know that our military leaders, who are normally apolitical, will ignore their commander in chief when he suggests nuking a hurricane or invading Denmark. I want to know that our business leaders, who are supposed to be capitalists, will ignore any order to quit China. I want to know that our bureaucrats will carry out their assigned tasks without kowtowing to the strongman in the White House who, frankly, more properly belongs in a banana republic somewhere.
It's a measure of how bad things are, and how grotesque President Trump has become, that a former NY fed governor is even suggesting this stuff out loud. But don't shoot the messenger.
286
@Andy
Every patriotic public servant has a duty to refuse unjust orders. When Trump demands that the Fed intervene to help him, that is corruption of laws written under the Constitution. The Fed must refuse.
However, if Trump's opponents corrupt the laws written under the Constitution to fight Trump, it helps Trump corrupt the Constitution. It is like putting out a fire with gasoline.
Trump is constantly violating the Constitution and threatening to violate the Constitution. These are High Crimes or Misdemeanors. Compare Trump's behavior to his job description and the rest of the Constitution, then call out his High Crimes.
You can't out-cheat professional con-men. Use just laws equally enforced, even against the president.
2
If POTUS insists on politicizing the Fed then they are politicized, like it or not. By any means necessary, we must protect the long-term security of our nation. If that means playing by Trump's own rules, then so be it. He's a cancer that needs to be excised and the end will justify the means.
84
@d. rosemanTrump is a Putin puppet.
4
@d. roseman
The Constitution is on fire and your solution is to pour gasoline in it?
You can't stop Trump from attacking the Constitution by attacking the Constitution.
Explain all of his attacks and explain that attacks on the Constitution are High Crimes.
True....but totally stupid to say it out loud.
18
We have gone so far down the dark path that even respected institutions are considering unethical options to stop it.
While I understand the sentiment, its essentially vigilantism done for good reasons.
50
@Trying2BObjective
The institution of the Federal Reserve Bank is not considering unethical options. The opinion piece being discussed here was written by a former president of the Federal Reserve Bank of New York. As a FORMER Fed official, he is writing as a private citizen, not as a representative of the Fed.
10
@Susan
It's still a bad idea, and even saying it helps Trump more than it hurts him.
1
As a former Fed analyst, I say stay above the fray and go about your business to implement effective monetary policy. No one wants Trump removed more than I do, but it is not the Fed's place to be party to something like Dudley proposes.
27