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That's what former Treasury Secretary Larry Summers said, who held a strong Thursday speech for the central bankers. He was responding to an editorial released on Wednesday by former Fed Chairman in New York, William Dudley, for Bloomberg, in which Dudley insisted that the Fed's policy would not "allow" President Donald Trump's trade war .
Dudley went on to say "that there is even an argument that elections fall under the jurisdiction of the Fed," adding that the central bank should consider the impact of its decisions on the outcome of the election of 2020.
"The idea that the unelected and appointed Federal Reserve is seeking to use its powers to harm the economy so as to influence the election against a sitting president is a dreadful concept," he said. Summers to Richard Quest, CNN, Quest Newspaper.
With his controversial editorial, Dudley gave "help and comfort to all the toughest critics of the Fed," Summers said.
The former Treasury Secretary has described Dudley's opinion of "probably the least responsible statement on the part of a former financial executive for decades" in tweet Wednesday.
The Federal Reserve's independence is a hot topic considering the frequency with which Trump criticizes the central bank and asks it to lower interest rates more aggressively to revive the economy. The Fed has made its first rate cut since the 2008 financial crisis in July.
Summers said Fed chairman Jerome Powell, who is appointed by Trump but is often at the center of the president's criticism, "is doing his job overall" under the circumstances.
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