America’s Investors Need to Speak Up for the Fed
Interest-rate policy can and should be questioned. But the case for a politically independent central bank is open and shut.
Look out for falling debris.
Photographer: Chip Somodevilla/Getty Images
Cascading attacks on Federal Reserve Chair Jerome Powell, including Thursday’s televised scolding over the cost of renovating the central bank’s headquarters, continue to batter away at the institution’s independence. Many business leaders might share the White House’s desire for immediate rate cuts. But calling for lower rates is one thing. Trying to compel the Fed’s submission — as the president and his allies seem intent on doing — is another.
It’s fine for administration officials to make the case for lower rates. No central bank is infallible, and the Fed’s choices should be thoroughly debated. At least two of its policymakers now seem to agree that a (modestly) lower policy rate makes sense. More, including Powell himself, might join them as further data arrives.