Wharton Fed Historian Says Trump's Criticism of Rate Hikes Is Risky

The video discusses the historical context of the Federal Reserve's independence and how presidential influence has evolved over time. It examines the potential consequences of presidential comments on Fed decisions, including the risk of overreaction or a publicity war. The discussion also covers the impact of direct presidential requests on the Fed and the possibility of a political realignment around monetary policy, highlighting the changing partisan support for the Fed's independence.

What was the norm established by the Clinton economic team regarding presidential comments on the Federal Reserve?

• Presidential intervention

• Presidential collaboration

• Presidential oversight

• Presidential non-interference

What is a potential risk when a president criticizes the Federal Reserve's decisions?

• The Fed might ignore the criticism

• The Fed might overreact and change its policies

• The Fed might seek more political support

• The Fed might increase its transparency

How does the Federal Reserve's legitimacy depend on public perception?

• It depends on political endorsements

• It is based on economic performance

• It relies on public regard for its independence

• It is influenced by media coverage

What historical event altered partisan alignments regarding the Federal Reserve?

• The 1991 state of the Union address

• The 2016 presidential election

• The founding of the Federal Reserve

• The 2008 financial crisis

What might President Trump accelerate according to the discussion?

• A political realignment around monetary policy

• A decrease in interest rates

• An increase in Federal Reserve transparency

• A new economic policy