Get Ready for the End of Fed Independence

“The market response to President Trump’s Monday attempt to fire a Federal Reserve governor was relatively subdued,” the Wall Street Journal reports.

“Don’t let that fool you. If Trump’s effort to remove Lisa Cook for cause succeeds, and perhaps even if it doesn’t, this week will go down as one of the most consequential for financial markets in decades.”

“It could mark the end of the Federal Reserve’s independence from White House control, which it effectively obtained in 1951. As a result, inflation is likely to be higher and more volatile than in the decades before 2020.”

Bloomberg: Trump team weighing options to extend influence to Fed banks.