Federal Reserve Mouthpiece: Trump's Remarks Will Only Make It Harder for the Next Federal Reserve Chair

ChainCatcher news, Nick Timiraos, a reporter for the Wall Street Journal known as the "Fed's megaphone," stated that Trump called Federal Reserve Chairman Powell the "biggest loser," but the bigger loser in his feud with the Fed may be the person Trump chooses to replace Jay Powell next year. By attacking the Fed to influence policy, Trump may create a "cloud of doubt" over his nominee.

Lawrence Summers, who served as Treasury Secretary under the Clinton administration from 1999 to 2001, stated, "It is foolish for presidents to publicly attack the Fed. The Fed will either not listen, or if it does listen, it will feel pressured to prove its independence, which means short-term interest rates will remain unchanged or even higher."