Trump wants to push the Fed in, in Mr. Stoll's view, in the right direction of lower interest rates...."
How do we know that Mr. Stoll's view is correct? I think presidents want low interest rates because they can accelerate economic growth, which leads to overheating, followed by a recession.
A better system would be to abolish the Federal Reserve and let interest rates be set in the marketplace.
The federal reserve should be more transparent about its reasoning. It should state:
1. To the degree that SCOTUS curbs the tariffs that are not related to national security, the Fed will be more likely to cut rates because, for example, getting aluminum produced with Quebec's comparative advantage due to hydroelectric power lowers input costs.
2. To the degree that oil supply is increased the Fed will be more likely to cut rates because energy costs are a major part of the consumer price index.
3. To the degree that more illegal aliens are removed from the country the Fed will be more likely to cut rates because of an anticipated fall in apartment prices (using the logic of ICE demonstrators, you can't spell PRICE without ICE).
#1 will be a rate-cut consolation to President Trump after a SCOTUS decision curbing tariffs.
#2 and #3 will make clear that the Fed understands that key Trump policies have anti-inflationary effects.
The President is right to venerate FDR as an effective leader. Whatever one may think of the policies and legacies of the New Deal, his abilities and accomplishments as a leader were extraordinary. A terrific book on the topic is Unlikely Heroes: Franklin Roosevelt, His Four Lieutenants, and The World They Made, by Derek Leebaert (2023).
Trump wants to push the Fed in, in Mr. Stoll's view, in the right direction of lower interest rates...."
How do we know that Mr. Stoll's view is correct? I think presidents want low interest rates because they can accelerate economic growth, which leads to overheating, followed by a recession.
A better system would be to abolish the Federal Reserve and let interest rates be set in the marketplace.
The federal reserve should be more transparent about its reasoning. It should state:
1. To the degree that SCOTUS curbs the tariffs that are not related to national security, the Fed will be more likely to cut rates because, for example, getting aluminum produced with Quebec's comparative advantage due to hydroelectric power lowers input costs.
2. To the degree that oil supply is increased the Fed will be more likely to cut rates because energy costs are a major part of the consumer price index.
3. To the degree that more illegal aliens are removed from the country the Fed will be more likely to cut rates because of an anticipated fall in apartment prices (using the logic of ICE demonstrators, you can't spell PRICE without ICE).
#1 will be a rate-cut consolation to President Trump after a SCOTUS decision curbing tariffs.
#2 and #3 will make clear that the Fed understands that key Trump policies have anti-inflationary effects.
The President is right to venerate FDR as an effective leader. Whatever one may think of the policies and legacies of the New Deal, his abilities and accomplishments as a leader were extraordinary. A terrific book on the topic is Unlikely Heroes: Franklin Roosevelt, His Four Lieutenants, and The World They Made, by Derek Leebaert (2023).