Jawboning the Fed?
Greg Robb of MarketWatch reports, It’s been decades since the White House has warned the Fed the way Kudlow just did : It has been a long time —the early 1990s in fact— since a White House tried to influence Federal Reserve policy the way Trump economic advisor Larry Kudlow did on Friday. In an interview with Fox Business Network, Kudlow jawboned the Fed, saying: “My hope is that the Fed, under its new management, understands that more people working and faster economic growth do not cause inflation.” “My hope is that they understand that and that they will move very slowly,” he added. It was the senior advisers to President George Bush, particularly Treasury Secretary Nicholas Brady, who pushed the Fed to cut rates at a faster pace in the run-up to the recession that lasted from July 1990 until March 1991. In fact, Bush blamed former Fed Chairman Alan Greenspan for his defeat to Bill Clinton in 1992. Financial markets were roiled by Brady’s warnings, said Lewis Alexand