Dudley Urges Fed to Sway Election Against Trump – NMP Skip to main content

Dudley Urges Fed to Sway Election Against Trump

Phil Hall
Aug 28, 2019
The Trump Administration revisited a concern from earlier in the year that the President was considering the removal of Jerome Powell as Chairman of the Federal Reserve

Former New York Federal Reserve Bank President and CEO William F. Dudley took an unprecedented step in urging the nation’s central bank not to cut rates in order to prevent the 2020 re-election of President Donald Trump.
 
Former New York Federal Reserve Bank President and CEO William F. Dudley took an unprecedented step in urging the nation’s central bank not to cut rates in order to prevent the 2020 re-election of President Donald TrumpIn a Bloomberg News op-ed column, Dudley (pictured right) offered a harsh slam against Trump Administration economic and trade policies, citing what he considered to be a “disastrous path of trade war escalation.” Dudley, who was Obama-era appointee, suggested the Federal Reserve could play a crucial role in preventing the administration from achieving a second term.
 
“Central bank officials face a choice: enable the Trump administration to continue down a disastrous path of trade war escalation, or send a clear signal that if the administration does so, the president, not the Fed, will bear the risks—including the risk of losing the next election,” he wrote. “After all, Trump’s reelection arguably presents a threat to the U.S. and global economy, to the Fed’s independence and its ability to achieve its employment and inflation objectives. “If the goal of monetary policy is to achieve the best long-term economic outcome, then Fed officials should consider how their decisions will affect the political outcome in 2020.”
 
The Federal Reserve quickly issued a statement distancing itself from Dudley’s comments.
 
“The Federal Reserve’s policy decisions are guided solely by its congressional mandate to maintain price stability and maximum employment. Political considerations play absolutely no role,” the statement said.
 
Dudley’s column stood in sharp contrast to comments made on Friday by Federal Reserve Chairman Jerome Powell, who declared the U.S. economy “is now in a favorable place” and added the central bank was ready to respond to drastic changes.
 
“The U.S. economy has continued to perform well overall, driven by consumer spending,” he said. “Job creation has slowed from last year's pace but is still above overall labor force growth. Inflation seems to be moving up closer to two percent. Based on our assessment of the implications of these developments, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric two percent objective.”
 
The central bank’s policymaking Federal Open Market Committee (FOMC) meets again from Sept. 17-18.

 
Published
Aug 28, 2019
SEC: Angel Oak Capital Advisors Misled Investors

Company, portfolio manager agree to pay $1.825M combined in civil penalties.

Regulation and Compliance
Aug 10, 2022
MISMO Seeks Public Comment On 3 eMortgage Resources

Updates proposed to MISMO Business Glossary, eMortgage Glossary, and eModification Reference Flyer.

Regulation and Compliance
Aug 05, 2022
As Expected, The Fed Raises Rate By Another 0.75%

Experts say housing industry will shrug off the latest increase.

Regulation and Compliance
Jul 27, 2022
AmTrust Ends 'No-Poach' Agreement, Pays $1.25M Fine In Deal With N.Y. AG

Company also agrees to cooperate with ongoing investigations of the title insurance industry.

Regulation and Compliance
Jul 25, 2022
NAR Chief Economist: Nationwide Home Price Decline Won't Happen Soon

Lack of inventory continues to support growth in prices, which have increased year over year for 124 straight months.

Regulation and Compliance
Jul 22, 2022
FHFA Director: Fannie, Freddie Need $300B Combined In Capital

So far, the enterprises combined have built $83.5 billion in reserves, or about 27% of the target.

Regulation and Compliance
Jul 21, 2022