The former boss of the federal Reserve bank of New York, and as number two in the monetary policy committee of the Fed, William Dudley is so alarmed by the policy of Donald Trump that he dares to advise the central bank to practice a kind of politics of the worst. In his mind, to beat Trump has become as important as to fight the risk of recession.
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In an editorial published by Bloomberg, the former chief economist of Goldman Sachs, who left the New York Fed last year to join the university of Princeton, proposes that the Fed will not reduce its key interest rate in the case where the trade war with China would seriously affect u.s. growth. This lack of response could discourage escalation in the trade war," says coldly William Dudley. And to add: "The re-election of Trump is a threat to the global economy and the united states for the independence of the Fed. "The central bank responded quickly. "Political considerations play absolutely no role in the decisions of the Fed," said a spokesman.
Even overwhelmed by the critical day-to-day the White House asked him to reduce massively its key rate, it is hard to imagine Jay Powell, the chairman of the Fed, to sabotage the economy to sink the chances of the president. That William Dudley, who is not known to be an activist irresponsible, advance such an idea testifies to the panic that the trumpisme sown in the establishment.Updated Date: 29 August 2019, 00:00