New York Times: “The decision comes down to who Mr. Trump believes will be more successful in delivering the substantially lower borrowing costs that he has long struggled to get from the Fed under Mr. Powell. Mr. Trump, who elevated Mr. Powell to chair in 2017, appears haunted by that decision. He has made it clear that this time he wants someone more malleable who will take his advice.”
“That prerequisite creates a credibility problem for whoever is selected, one that will be difficult to escape. A chair who is seen as beholden to the president risks eroding the public’s confidence that the Fed is making decisions in the best interest of the economy, not the White House. If that crumbles, borrowing costs could move higher, not lower as the president wants.”
