Trump’s illegal and unfounded attempt to terminate a sitting member of the Federal Reserve Board of Governors places the US and world economy in a rather unprecedented spot, and as with the shocks of Trump’s tariffs and trade wars it is unclear what market turmoil might accrue from politicising the independent agency tasked with monetary policy, like with wholesalers having extra stock on hand as a buffer to uncertainty, norms and postures in place for a generation and more take some time to undo. The recent case of Tรผrkiye comes to mind, however, when following the purge of government officials following reportedly thwarted coup attempt against the administration of Recep Tayyip Erdoฤan economic advisors were replaced with loyalists and the country, after a period of incubation (not easily monitored as reliable data was not being presented), inflation shot above eighty percent and the economy flirted with collapse.
Not able to oust the chairman—to remove his own appointee for cause, Trump has turned to a tactic he has tried before, with a mole at the obscure Federal Housing Finance Agency, the regulatory body overseeing home loan administration, finding potential irregularities (hardly rising to a fireable offence) in mortgage applications from the Fed member—as he has uncovered for other enemies of the president. Supreme court precedent affirmed limits on the ability of the president to dismiss the heads of independent agencies within the executive branch with the titular case in 1935, when FDR fired the federal trade commission chief for opposing New Deal policies. Under pressure from Trump and his insistence for a magisterial presidency and characterising neutral departments whose appointments span several administrations unaccountable, the court revisited their previous decision, vacating it and granting Trump broad powers of dismissal without the consultation of congress or the judiciary—with the significant and specific carve out that the overturning does not extend to the Federal Reserve System. The only other time the US even approached this level of pressure and interference on the national bank was in 1951 during the Truman administration when the president and the Fed chair Thomas B McCabe had a disagreement on interest rates and credit, with McCabe eventually coerced into resigning his commission and returning to the private sector, but not before securing agreement between the executive and the department of treasury that safeguarded the independence of the Fed and shielded it from the influence of both.

synchronoptica
one year ago: a skilled sniper (with synchronopticรฆ) plus a circle-and-spoke map of the London Underground
fourteen years ago: divination, inspiration from antique books
fifteen years ago: a superlative wine service
sixteen years ago: the passing of Ted Kennedy