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By Adam Tooze
Dr. Tooze is a professor of history at Columbia University and the writer of the Chartbook newsletter.
President Trump’s assault on the Federal Reserve is a naked power grab. The central bank, through its control of interest rates and influence on financial markets, is the most powerful and fast-acting agency of economic policy. For MAGA to gain control by ousting board members and packing the leadership of its regional operations is alarming. It raises the prospect of an economic policy rigged ruthlessly to favor the electoral prospects of Republicans.
It is possible that the bid for control will be warded off by the courts or that it will be stopped by bond market blowback. Anxious investors selling U.S. Treasuries will drive up interest rates — the opposite of what Mr. Trump wants. He may flinch.
