Trump's Investigation of Powell Is Also a Warning to the Next Fed Chair - Ip, WSJ
The criminal investigation into Federal Reserve Chair Jerome Powell isn’t ultimately about the Fed’s headquarters, or Powell, or even interest rates. It’s about power. President Trump intends to take control of the central bank, no matter what the law or the courts say.
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Since returning to power a year ago, Trump has steadily obliterated the lines that once separated the president from other sources of federal authority. He fired Democratic members of agencies such as the Federal Trade Commission contrary to law, sacked career officials in justice, defense and law enforcement deemed insufficiently loyal, and trampled on Congress’ authority over spending and revenue.
The Fed was an exception. Because politicians always want lower interest rates, which can lead to inflation, the Fed, by law and tradition, operates independently from the president and Congress. Presidents have pressured the Fed anyway, but usually behind closed doors, while publicly claiming to respect its independence.
Not Trump. He insists he should have some say over interest rates, and many in his administration consider independence antithetical to the president’s supreme authority over the executive branch.
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That Trump officials are going after Powell without awaiting the Supreme Court’s decision on Cook’s removal reflects their determination to break the Fed’s independence. They might succeed, even if they fail in court. The message to all Fed officials is that defying Trump is an invitation to have their backgrounds and public statements investigated for a pretext for removal. Given that, who would wish to serve? Presumably, only someone ready to deliver what Trump wants.
https://www.wsj.com/economy/central-banking/trump-investigation-jerome-powell-next-fed-chair-b1739ede?st=M2BBUW&reflink=desktopwebshare_permalink
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