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In Washington, D.C., myths die hard. Chief among them is the cherished “independence” of the U.S. Federal Reserve. Politicians swear it’s sacred, economists worship it like a pagan idol, and central bankers — well, they pray daily that it’s true. But like most bedtime stories, Fed independence is more fiction than fact.
Case in point: President Donald Trump recently lit up markets by lobbing accusations at Fed Chair Jerome Powell, claiming he had lowered rates to help former President Joe Biden get elected in 2020. “Powell has always been ‘Too Late,’” Trump huffed, “except when it came to the Election period when he lowered to help Sleepy Joe Biden, later Kamala, get elected.”
This post was originally published on Market Watch
