NewsMV
The rate outlook carries a new variable. Analysis finds that President Trump has been treating Federal Reserve Chairman Kevin Warsh as a political ally, reaching him by phone.
Warsh's ability to demonstrate independence on inflation and interest rates is now the credibility question, and the economic risks attached to it are real.
The reported contact Trump's phone calls to Warsh are the catalyst. The framing that emerges from the reporting is alliance, not institutional deference to the Fed.
For a central bank chair, that distinction carries a cost.
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