Two prominent Fed voiced issued strong public defenses of the central bank’s independence on Monday, calling out President Donald Trump‘s attacks on Chair Jerome Powell as politically dangerous and economically destabilizing.
Speaking Monday on CNBC, Richard Fisher, former president of the Dallas Fed, warned that Trump’s repeated attacks on Powell could inflict serious long-term damage on the credibility of the Federal Reserve and the broader U.S. economy.
“The one thing you don’t want to have happen is for the Fed to become politicized,” Fisher said.
Fisher added that even if Trump could fire Powell, which remains legally uncertain, it would be a self-defeating move.
“I don’t think it’s in the president’s interest to sack him. The markets would react extremely negatively,” he said.
Fisher also highlighted that current uncertainty has already paralyzed corporate decision-making, referencing companies like United Airlines Holdings Inc. (NASDAQ:UAL), which recently offered dual earnings forecasts due to macroeconomic unpredictability.
“I think the president, frankly, is undermining his own case.” “No business can make a decision here,” Fisher said. “That uncertainty has been generated …