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By Aaron Klein
Mr. Klein was previously chief economist of the Senate Banking, Housing and Urban Affairs Committee, handling Federal Reserve issues and confirmations.
For decades, the Federal Reserve has managed America’s interest rates free from the kind of political pressure that can ramp up inflation and drive economies into a recession. That successful run could come to an abrupt end if President Trump successfully ousts Lisa Cook, a Fed governor.
The reason lies in a little-known loophole buried in the Fed’s machinery that could allow our central bank’s independence to be eviscerated virtually overnight. That loophole is opening in less than six months.
