The myth that the Federal Reserve is an independent institution lives on. Since the inception of the United States central bank, the Eccles Building has colluded with many administrations – both Rs and Ds – to meddle in the economy and improve chances of re-election (SEE: Donald Trump is right – Federal Reserve is a political tool to help the White House).
While President Donald Trump is being transparent in his desires for a more cooperative Fed, other presidents have been rather clandestine in the Fed’s role in the White House and overall economy.
But Treasury Secretary Steven Mnuchin reiterated the point that he respects the independence for the Fed.
Speaking in an interview with CNBC, Mnuchin revealed that Trump understands the Fed is doing its job and his recent remarks are a reflection of the fact that he supports low interest rates – something he was against in the 2016 election.
However, he noted that Trump does believe the Fed should leave rates alone when inflation is under control.
“The president has been clear, he likes low rates. [Trump] doesn’t feel that he has to attack at all,” he explained. “The president is concerned about the Fed raising interest rates too much and slowing down the economy. And those are, obviously, natural concerns.”
So far, the Fed has raised rates three times in 2018, and another one is penciled in in December.
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