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A majority of 47% of respondents believe that appointments badociated with the president's critical remarks about the Fed "reduce the independence of the central bank" and that this could have implications for the markets and the economy.
"Stacking the Fed with partisan ploys would change the market perceptions of Fed decisions, even if two appointments do not change the Fed's decision-making process," said Diane Swonk, chief economist at Grant Thornton. ascend."
For the moment, respondents do not believe that the president's criticism will affect monetary policy, but anxiety is growing. Sixty-five percent said the president's comments had "no effect on rate hikes", but they were down from 83% when the question was last asked in November. And 22% believe that Trump's remarks make rate increases less likely, up 14%.
Robert Brusca of Fact and Opinion Economics said the president had the right to speak on the Fed's policy, "but it's silly.The Fed may be waiting too long to do what the President wants to do for avoid giving the impression of being intimidated. "Brusca thinks that the Fed could have raised its rates in December to avoid the appearance of giving in to political pressure.
It also seems that markets are getting used to a little more criticism of the Fed by the president. Trump broke with a long tradition of presidents who do not comment on monetary policy. In July, when the question was asked for the last time, 83% found Trump's comment inappropriate. Now it's 61%.
"The times are very different and I do not believe that the challenge to the Fed's independence will continue after Trump's departure," said Chris Rupkey, Chief Finance Economist at MUFG.
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