The Supreme Court is still considering whether President Donald Trump has the authority to remove Lisa Cook from the Federal Reserve.
Ryan Chahrour is a professor of economics and international studies at Cornell University. He says threats to the Federal Reserve's independence are already making it harder for the Fed to do its job today.
Chahrour says: “While market movements have been modest so far, they signal declining trust in the ability or willingness of future FOMC members to achieve the Fed's inflation objectives. The last thirty years of economic research and practical experience around the world all tell us that this trust is essential for successful monetary policy.
“Whatever the Supreme Court decides about Governor Cook, the Fed will have to work hard in the coming years to reinforce its commitment to low and stable inflation. I suspect doing this will require interest rates to remain higher than they would have been absent the political interventions over the last year.”
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