{"id":36311,"date":"2018-07-31T08:08:28","date_gmt":"2018-07-31T13:08:28","guid":{"rendered":"http:\/\/olduvai.ca\/?p=36311"},"modified":"2018-07-31T08:08:28","modified_gmt":"2018-07-31T13:08:28","slug":"trumps-tweets-end-the-myth-of-fed-independence","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=36311","title":{"rendered":"Trump\u2019s Tweets End the Myth of Fed Independence"},"content":{"rendered":"<h3><a title=\"Trump\u2019s Tweets End the Myth of Fed Independence\" href=\"http:\/\/www.ronpaulinstitute.org\/archives\/featured-articles\/2018\/july\/30\/trump-s-tweets-end-the-myth-of-fed-independence\/\">Trump\u2019s Tweets End the Myth of Fed Independence<\/a><\/h3>\n<p>President Trump\u2019s recent Tweets expressing displeasure with the Federal Reserve\u2019s (minor) interest rate increases led to accusations that President Trump is undermining the Federal Reserve\u2019s independence. But, the critics ignore the fact that Federal Reserve \u201cindependence\u201d is one of the great myths of American politics.<\/p>\n<p>When it comes to intimidating the Federal Reserve, President Trump pales in comparison to President Lyndon Johnson. After the Federal Reserve increased interest rates in 1965, President Johnson summoned then-Fed Chairman William McChesney Martin to Johnson\u2019s Texas ranch where Johnson shoved him against the wall. Physically assaulting the Fed chairman is probably a greater threat to Federal Reserve independence than questioning the Fed\u2019s policies on Twitter.<\/p>\n<p>While Johnson is an extreme example, history is full of cases where presidents pressured the Federal Reserve to adopt policies compatible with the presidents\u2019 agendas \u2014 and helpful to their reelection campaigns. Presidents have been pressuring the Fed since its creation. President Warren Harding called on the Fed to lower rates. Richard Nixon was caught on tape joking with then-Fed chair Arthur Burns about Fed independence. And Lloyd Bentsen, President Bill Clinton\u2019s first Treasury secretary, bragged about a \u201cgentleman\u2019s agreement\u201d with then-Fed Chairman Alan Greenspan.<\/p>\n<p>President Trump\u2019s call for low interest rates contradicts Trump\u2019s earlier correct criticism of the Fed\u2019s low interest rate policy as harming middle-class Americans. Low rates can harm the middle class, but they also benefit spend-and-borrow politicians and their favorite special interests by lowering the federal government\u2019s borrowing costs. Significant rate increases could make it impossible for the government to service its existing debt, thus making it difficult for President Trump and Congress to continue increasing welfare and warfare spending.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<div class=\"post-attributes\">\n<div class=\"post-authors uBlogsy_font_style40\"><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Trump\u2019s Tweets End the Myth of Fed Independence President Trump\u2019s recent Tweets expressing displeasure with the Federal Reserve\u2019s (minor) interest rate increases led to accusations that President Trump is undermining the Federal Reserve\u2019s independence. But, the critics ignore the fact that Federal Reserve \u201cindependence\u201d is one of the great myths of American politics. When it [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[952,21034,4850,7844,303,4047,21035,19283,4219,692,819,3650,21036,10587],"class_list":["post-36311","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alan-greenspan","tag-arthur-burns","tag-bill-clinton","tag-donald-trump","tag-fed","tag-fed-independence","tag-lloyd-bensten","tag-lyndon-johnson","tag-richard-nixon","tag-ron-paul","tag-twitter","tag-us-federal-reserve","tag-warren-harding","tag-william-mcchesney-martin"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36311"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36311\/revisions"}],"predecessor-version":[{"id":36312,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36311\/revisions\/36312"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}