Despite the numerous attempts to shake things up at the Fed and consumers feeling the weight of Trump’s policies, Moynihan feels the economy is on the upswing.
While President Donald J. Trump searches for a new chair of the Federal Reserve, banking leaders like Bank of America Chairman and CEO Brian Moynihan say that without independent banking systems, the market will push back, CBS News reports.
In an interview on “Face the Nation with Margaret Brennan,” Moynihan suggested there is “too much fascination with the Fed” right now amid interest rates being cut down for the third time in a row, reducing the federal funds rate. He warns there will be consequences and that the market “will punish people if we don’t have an independent Fed.” “And everybody knows that,” he told Brennan.
A 1935 Supreme Court ruling found that Congress may limit the grounds on which the president can fire Fed members, but that didn’t stop the high court from giving Trump the power to fire members of federal labor boards. However, the limit was the Federal Reserve, which was called a “uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States.”
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Source: Black Enterprise
