U.S. Senator Warren wrote to Federal Reserve Governor Waller, demanding a halt to the rollout of regional Federal Reserve reform plans.
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Federal Reserve Governor Waller: The Fed will not deliberately maintain low interest rates.
Odaily Odaily reports that Federal Reserve Governor Waller stated that the Fed will not deliberately maintain low interest rates to help the US government finance its fiscal deficit. He believes it is reasonable to consider setting an inflation target range, and that Fed Chairman Warsh is reiterating the commitment to the 2% target, favoring a range for inflation. However, adjusting the inflation target at this stage would undermine the Fed's credibility. (Jinshi)
Federal Reserve Governor Waller: If necessary, the use of forward guidance can be abandoned to maintain policy flexibility.
PANews reported on July 6 that Federal Reserve Governor Waller stated at a conference on monetary policy transmission in Rome, Italy, that monetary policy decisions must be based on the current "initial conditions" of the economy and cannot mechanically apply historical averages. He pointed out that large-scale shocks can trigger non-linear behavioral changes, thereby altering the time lag of monetary policy and the slope of the Phillips curve. Waller emphasized that forward guidance can influence the market in advance and accelerate policy transmission under certain conditions, but if the wording is too rigid or faces multiple possible scenarios, it will limit FOMC operations such as interest rate hikes and delay the timing of adjustments. The Federal Reserve has established a working group to assess the role of forward guidance, and he believes that in some situations, the use of this tool should be weakened or even stopped, and decisions should rely more on real-time economic data.
Trump stated that Warsh "must do what he has to do" and will continue to push for the dismissal of Federal Reserve Governor Cook.
According to Mars Finance, on July 3rd, following the release of the US June non-farm payroll report last night, US President Trump gave an interview and refused to offer advice to Federal Reserve Chairman Warsh, stating that the new chairman "must do what he has to do." Trump indicated that Warsh has a potentially hostile board, and unfortunately, this board may be trying to do the wrong things. Trump also stated that he will continue to push for the dismissal of Federal Reserve Governor Cook by "winning the lawsuit."
Trump: Process to remove Federal Reserve Governor Cook will begin
According to ChainCatcher, citing Jinshi News, US President Trump stated that he will begin the process of "removing" Federal Reserve Governor Cook from the Federal Reserve.
Warsh appointed former Bank of England Governor Mervyn King to co-chair the Federal Reserve's new communications task force.
According to Mars Finance, on July 1, market sources reported that Federal Reserve Chairman Warsh appointed former Bank of England Governor Mervyn King to co-chair the Fed's new communications task force.
Federal Reserve Governor Cook: Relieved by the Supreme Court's ruling, will defend the Fed's independence.
PANews reported on June 29 that Federal Reserve Governor Cook stated, "This matter (the mortgage fraud allegations) has absolutely nothing to do with mortgage documents I signed before I became a Federal Reserve Governor. This is purely a conspiracy to remove me from office, and the pretext is entirely fabricated. The reason I am being targeted is because I refused to succumb to political pressure and insisted on setting interest rate policies solely based on what is best for the American people. This is the most fundamental responsibility of a Federal Reserve Governor. Today's ruling reaffirms a principle that underpins generations of sound economic management: the Federal Reserve must make all policy decisions based on evidence and independent judgment, free from political interference." "The Supreme Court upheld the lower court's order and affirmed the necessity of due process and just cause; this decision recognizes that the Federal Reserve's independence is crucial to achieving the congressional goals of 'price stability' and 'full employment.'"