From:
Columbia Business School Professor Brett House spoke with Forbes Daily about the Federal Reserve’s decision to hold interest rates steady at its January meeting, despite pressure from President Donald Trump to cut rates. House explained that “in many ways, this meeting is a secondary event to the bigger concerns about Fed independence,” pointing to the Trump administration’s criminal investigation into Chair Jerome Powell and efforts to remove Fed Governor Lisa Cook. Paradoxically, House noted, such political threats can raise inflation expectations, making it more difficult—not easier—for the central bank to justify rate cuts.
