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Trump Pressuring the Fed

Author

Listed:
  • Peter Tillmann

    (Justus-Liebig-University Giessen)

Abstract

After appointing Federal Reserve Chairman Powell, President Trump steadily put pressure on the Fed to cut interest rates. We show that, on average, a statement from Trump led to lower long-term interest rates, consistent with expectations of lower expected future short rates. However, the impact of Trump's statements declined over time.

Suggested Citation

  • Peter Tillmann, 2019. "Trump Pressuring the Fed," MAGKS Papers on Economics 201920, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201920
    as

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    File URL: https://www.uni-marburg.de/fb02/makro/forschung/magkspapers/paper_2019/20-2019_tillmann.pdf
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    References listed on IDEAS

    as
    1. Charles L. Weise, 2012. "Political Pressures on Monetary Policy during the US Great Inflation," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(2), pages 33-64, April.
    2. Demiralp, Selva & King, Sharmila & Scotti, Chiara, 2019. "Does anyone listen when politicians talk? The effect of political commentaries on policy rate decisions and expectations," Journal of International Money and Finance, Elsevier, vol. 95(C), pages 95-111.
    3. Scotti, Chiara, 2016. "Surprise and uncertainty indexes: Real-time aggregation of real-activity macro-surprises," Journal of Monetary Economics, Elsevier, vol. 82(C), pages 1-19.
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    More about this item

    Keywords

    Federal Reserve; monetary policy; yield curve; political economy; central bank independence;
    All these keywords.

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