Trump’s criminal investigation of Fed chairman a mistake: CEI analysis

The Trump Justice Department’s newly announced criminal investigation of the Federal Reserve chairman, ostensibly concerning renovations of the Fed’s headquarters, is a mistake. Ryan Young, CEI senior economist, explains why.

“President Trump’s criminal investigation of Federal Reserve Chair Jerome Powell is a mistake. Trump’s attempted takeover of monetary policy follows the lead of Zimbabwe, Turkey, and Peronist-era Argentina. Affordable prices require stable monetary policy. That means having a central bank that is as independent of politics as possible.

“If Trump successfully removes Powell, it will backfire. A Trump-run Fed might give the president the 1 percent official interest rate that he wants, but the market rate will be much higher due to a lack of trust in the Fed, as well as the higher inflation that will likely result. This will hurt the very people the president seeks to help.

“The president’s investigation is as pointless as it is destructive.”