Hovering Over Federal Reserve Minutes, a Trump Shadow
The one thing Federal Reserve officials were in broad agreement about at their last meeting was this: not tipping their hands about what happens next. Minutes released Wednesday showed a fractious meeting on many fronts last month when a divided Fed cut interest rates for the first time in a decade. But the consensus to not reveal their intentions was clear, and may show that the steady browbeating by President Donald Trump has begun to influence how the Fed communicates. Undercommit, and it may throw markets off course and draw more fire from Trump, who has been relentless in demanding not one but a slew of rate cuts and even a return to crisis-era bond buying to supercharge a softening but still-growing economy. Overcommit, and it looks like capitulation to the White House, a possible blow to the Fed’s perceived status as an independent, technical agency that does not consider politics in its policy decisions. FILE – Federal Reserve board member Jerome Powell speaks after President Donald Trump announced him as his nominee for the next chair of the Federal Reserve in the Rose Garden of the White House in Washington, Nov. 2, 2017. Trump adamant on rate cuts Yet …