The Federal Reserve may have more than the test of economic growth, as policy makers are preparing to fulfill the rates next week.
in Interview with CNBC On Thursday, the chief economist at Moody Mark Zandy said Modern job numbers It was so bad that it could be the United States already in stagnation.
He added: “I think the federal reserve strongly wants to avoid this type of results.” “Obviously, no one wants to stagnate. But also in the context of the Federal Reserve Independence, they really don’t want to blame the recession because that will weaken their ability.”
Wharton Finance Jeremy Siegel put this scenario in July He told cnbc Federal Reserve Chairman Jerome Powell may need to resign in order to maintain the independence of the central bank in the long run.
Region: If the economy stumbles with Powell on his head, Trump can refer to a “perfect scapegoat” and asks Congress to give the White House more power on the federal reserve.
“This is a threat. Our federal reserves are not part of our constitution. It is a creature of the American Congress, which was established by the Federal Reserve Law of 1913. All its powers are transferred from Congress,” he said. “Congress has amended the Federal Reserve Act several times. He can do it again. It can give powers. Palmet may take off.”
Meanwhile, Stephen Miran is scheduled to join the Federal Reserve Bank – without resignation as head of the Economic House of Economists at the White House – after he previously called for changes that would erod its independence before joining the Trump administration.
Note last month, Jpmorgan said The appointment of Miran to the Federal Reserve Bank “It nourishes an existential threat, as it seems that the administration aims to always aim at the Federal Reserve Law to change the US monetary and regulatory authority permanently.”
Reducing the Federal Reserve rate
Despite the tremendous pressure that Trump put on the federal reserve to reduce rates, even in an attempt to shoot the ruler Lisa Cook, central bankers have resisted its calls to a large extent. But the sudden deterioration in the labor market made a virtual certainty.
The Federal Reserve meets on Tuesday and Wednesday, and the only question in Wall Street is Whether prices will decrease by 25 basis points or 50 basis points From the current level of 4.25 % -4.5 %.
On Friday note, the US head of economy at JPMorgan, Michael Feli, said he expected two or three opponents to reduce larger and do not oppose opponents to maintain rates unchanged.
At the last federal reserve meeting of the Federal Reserve Christopher, Elire and Michelle Bowman, other policy makers by calling to reduce a quarter of a point. Veruli said that they could once again oppose the vote to reduce half a point, as Miran is expected to “oppose” greater reduced “.
On Thursday, Zandy said the bar was high to reduce half a point, but “there is a possibility that we can overcome this.” He added that JPMorgan’s expectations for six discounts by the end of 2026 are reasonable, assuming that a neutral level of the FBI is about 3 %.
“It is possible if the economy is weaker and stagnation risk and is able to concern about the independence of the Federal Reserve more than to get something just less than that, by 2.5 % to 3 %,” Zandy said.
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