4 ms·

> If the fed loses appetite or ability to continue increasing interest rates How does the Fed lose the ability to increase (or decrease) interest rates? I was

by cagey 4y ago

> If the fed loses appetite or ability to continue increasing interest rates How does the Fed lose the ability to increase (or decrease) interest rates? I was under the impression that (ignoring the consequences of doing so), they can set them as they please.

prottog 4y ago
> (ignoring the consequences of doing so) There it is!
jedberg 4y ago
The Fed chair is appointed by the President. He or she may decided it is better for their re-election to have rates go down and appoint someone who agrees, or they my pressure the Fed chair accordingly.
chucksmash 4y ago
The Board of Governors is appointed by the President, and Governors can be dismissed by the President. If your increase is summarily reversed by the apparatchik board that replaces you, can you still be said to be capable of raising rates?
deleted 4y ago
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