Goldman's chief economist states that the Fed investigation heightens concerns about its autonomy
Goldman Sachs Economist Highlights Concerns Over Fed Independence
Jan Hatzius, the chief economist at Goldman Sachs, stated on Monday that the possibility of criminal charges against Federal Reserve Chair Jerome Powell would heighten existing concerns about the central bank's autonomy. Despite these pressures, Hatzius believes the Federal Reserve will remain committed to making decisions guided by economic data.
The administration of U.S. President Donald Trump has increased its scrutiny of the Fed, even threatening legal action against Powell following his testimony to Congress regarding a renovation project. Powell described this move as a "pretext" for the administration to exert greater control over monetary policy, particularly as Trump has been pushing for significant interest rate reductions.
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