A Top Fed Official Says the Trump Administration’s Threats Are ‘About Monetary Policy’
The New York Times • • business
Key Points:
- Neel T. Kashkari, president of the Federal Reserve Bank of Minneapolis, defended Fed Chair Jerome Powell amid a Justice Department criminal investigation, stating the Trump administration's actions were primarily about influencing monetary policy.
- The Justice Department served grand jury subpoenas related to the Fed's headquarters renovation, which Powell criticized as a pretext to pressure the Fed into lowering borrowing costs.
- Kashkari emphasized the importance of Federal Reserve independence for the American economy and viewed the situation as a chance to educate the public on this issue.
- The investigation has drawn criticism from global economic policymakers, Republican lawmakers, and some Trump allies, who warn it could destabilize financial markets and complicate Powell’s potential reappointment.
- Financial markets have remained relatively
