So much for the Fed not being a political institution.
And then the supposed Federal Reserve independence was torn to shreds. Celebrating a solid November jobs report in Las Vegas, President Joe Biden said the economy is now in a “‘sweet spot’ that’s needed for stable growth and lower inflation, not encouraging the Fed to raise interest rates.” In the blink of an eye, he reversed his previous position to not intervene in the central bank’s policy choices. But while it is easy to fault Biden for his remarks, other presidents engaged in the same behavior of respecting the body’s independence only when it was politically convenient.
Joe Biden and the Federal Reserve
In May 2022, before the annual inflation rate topped 9%, Biden told reporters that he would not attempt “to influence its decisions…
