Why the Establishment’s Fear of Trump’s Fed Moves Is About Optics, Not Economics

President Trump’s highly publicized feud with Fed Governor Lisa Cook has recently frightened establishment finance types. With all the pearl-clutching surrounding the Fed’s independence, it’s easy to forget that everything the Fed already does is politically motivated.

The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

After the Federal Reserve’s board voted to cut interest rates by a quarter of a percent last week, the Wall Street Journal editorial board declared that the central bank was now “Trump’s Federal Reserve.”

The editors are referring to the political establishment’s ongoing concerns that President Trump is mounting an unprecedented and extremely dangerous effort to “take over” the Federal Reserve—turning America’s central bank into a political tool for him and his successors.