Donald Luskin, chief investment officer at Trend Macrolytics, said: “Trump is holding the Fed accountable, and as the man who appoints Fed governors, that is entirely appropriate.” (CNBC)
That’s not exactly a rousing defense. In any case, remember Don Luskin is the guy who gave the “all clear” on September 14, 2008.
A 47% plurality of respondents believes the nominations along with the president’s critical remarks about the Fed are “reducing the central bank’s independence”
To remember why “Fed independence” is more than just a empty phrase, recall the time-inconsistency of non-inflationary monetary policy, excellently explained in this set of notes by Jeff Frankel (which I just taught to my students in macro class).