The Growing Risk to Fed Independence That Wall St Isn't Watching

Last month, Donald Trump fired the Federal Trade Commission's two Democratic commissioners. They have since filed suit, arguing that the law that created the FTC — as well as a 90-year-old Supreme Court precedent — prevent the president from firing them without cause. And now, what might seem like a niche legal dispute could end up having much bigger consequences for other independent government agencies, including the Federal Reserve. That would be a huge shock for Wall Street, which tends to value central bank independence. In this episode, we speak with Lev Menand, professor at Columbia Law School and author of The Fed Unbound, to talk about the huge stakes involved in this case.Read More:Trump and the Fed Are on a Collision CourseWho Will Protect the Fed’s Independence? The Markets Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlotsSee omnystudio.com/listener for privacy information.

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