In a recent opinion column, Citadel CEO Kenneth Griffin and economist Anil Kashyap cautioned that Trump’s calls to dismiss Fed governors undermine independence, Citadel CEO writes in WSJ op-ed. They argued that such actions threaten the Federal Reserve’s autonomy, a cornerstone of economic stability.
According to Griffin and Kashyap, political interference could weaken investor trust and push up borrowing costs. They warned that if the Fed is seen as politically controlled, inflation expectations may rise, and markets could become volatile.
The op-ed also noted that even Trump’s suggested replacements for Federal Reserve leadership, including Kevin Hassett, support the importance of preserving the Fed’s independence. This shows that respect for institutional neutrality goes beyond individual politics.
Griffin and Kashyap further highlighted the danger of targeting other independent bodies, such as the Bureau of Labor Statistics. They said interference in these agencies could damage the credibility of U.S. economic data, which investors and policymakers rely on worldwide.
In their view, the Federal Reserve must continually prove its independence through transparency, accountability, and performance. Undermining this balance could harm U.S. credibility and long-term economic health.
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