University of Michigan economist and former Obama White House advisor Betsey Stevenson issued a stark warning about the consequences of ending the Federal Reserve’s independence.
What Happened: On Monday, in a post on X, Stevenson suggested that mortgage rates could rise significantly if the markets lose faith in the central bank’s ability to manage inflation.
“End the independence of the Fed and get higher mortgage rates,” she said, while adding that “how high?” depends on whoever is better at predicting higher inflation rates, and this can be banks, investors, or borrowers.
See Also: Trump’s Fed Pick? He’s Cutting First, And Cutting Powell Out
Stevenson said this while quoting a post by Bloomberg …