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What it could mean for the Fed to lose its independence

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President Donald Trump’s attempt to fire a member of the Federal Reserve’s governing board has raised alarms among economists and legal experts who see it as the biggest threat to the central bank’s independence in decades.

The consequences could impact most Americans’ everyday lives: Economists worry that if Trump gets what he wants — a loyal Fed that sharply cuts short-term interest rates — the result would likely be higher inflation and, over time, higher borrowing costs for things like mortgages, car loans and business loans.

Trump on Monday sought to fire Lisa Cook, the first Black woman appointed to the Fed’s seven-member governing board. It was the first time in the Fed’s 112-year history that a president has tried to fire a governor.

Trump said he was doing so because of allegations raised by one of his appointees that she has committed mortgage fraud.

Cook has argued in a lawsuit seeking to block her firing that the claims are a pretext for Trump’s true goal: Gaining more control over the Fed. A court may decide next week whether to temporarily block Cook’s firing while the case makes its way through the legal process.

Cook is accused of claiming two homes as primary residences in July 2021, before she joined the board, which could have led to a lower mortgage rate than if one had been classified as a second home or an investment property. She has suggested in her lawsuit that it may have been a clerical error but hasn’t directly responded to the accusations.

Trump and members of his administration have made no secret about their desire to exert more control over the Fed. Trump has repeatedly demanded that the central bank cut its key rate to as low as 1.3%, from its current level of 4.3%.

Before trying to fire Cook, Trump repeatedly attacked the Fed’s chair, Jerome Powell, for not cutting the short-term interest rate and threatened to fire him as well.

“We’ll have a majority very shortly, so that’ll be good,” Trump said Tuesday, a reference to the fact that if he is able to replace Cook, his appointees will control the Fed’s board by a 4-3 vote.

“The particular case of Governor Cook is not as important as what this latest move shows about the escalation in the assaults on the Fed,” said Jon Faust, an economist at Johns Hopkins and former adviser to Powell. “In my view, Fed independence really now hangs by a thread.”

Some economists do think the Fed should cut more quickly, though virtually none agree with Trump that it should do so by 3 percentage points. Powell has signaled the Fed is likely to cut by a quarter point in September.

The Fed wields extensive power over the U.S. economy. By cutting the short-term interest rate it controls — which it typically does when the economy falters — the Fed can make borrowing cheaper and encourage more spending, growth, and hiring. When it raises the rate to combat the higher prices that come with inflation, it can weaken the economy and cause job losses.

Most economists have long preferred independent central banks because they can take unpopular steps that elected officials are more likely to avoid. Economic research has shown that nations with independent central banks typically have lower inflation over time.

Elected officials like Trump, however, have much greater incentives to push for lower interest rates, which make it easier for Americans to buy homes and cars and would boost the economy in the short run.

Douglas Elmendorf, an economist at Harvard and former director of the nonpartisan Congressional Budget Office, said that Trump’s demand for the Fed to cut its key rate by 3 percentage points would overstimulate the economy, lifting consumer demand above what the economy can produce and boosting inflation — similar to what happened during the pandemic.

“If the Federal Reserve falls under control of the president, then we’ll end up with higher inflation in this country probably for years to come,” Elmendorf said.

And while the Fed controls a short-term rate, financial markets determine longer-term borrowing costs for mortgages and other loans. And if investors worry that inflation will stay high, they will demand higher yields on government bonds, pushing up borrowing costs across the economy.

In Turkey, for example, President Recep Tayyip Erdogan forced the central bank to keep interest rates low in the early 2020s, even as inflation spiked to 85%. In 2023, Erdogan allowed the central bank more independence, which has helped bring down inflation, but short-term interest rates rose to 50% to fight inflation, and are still 46%.

Other U.S. presidents have badgered the Fed. President Lyndon Johnson harassed then-Fed Chair William McChesney Martin in the mid-1960s to keep rates low as Johnson ramped up government spending on the Vietnam War and antipoverty programs. And Richard Nixon pressured then-Chair Arthur Burns to avoid rate hikes in the run-up to the 1972 election. Both episodes are widely blamed for leading to the stubbornly high inflation of the 1960s and ‘70s.

Trump has also argued that the Fed should lower its rate to make it easier for the federal government to finance its tremendous $37 trillion debt load. Yet that threatens to distract the Fed from its congressional mandates of keeping inflation and unemployment low.

Presidents do have some influence over the Fed through their ability to appoint members of the board, subject to Senate approval. But the Fed was created to be insulated from short-term political pressures. Fed governors are appointed to staggered, 14-year terms to ensure that no single president can appoint too many.

Jane Manners, a law professor at Fordham University, said there is a reason that Congress decided to create independent agencies like the Fed: They preferred “decisions that are made from a kind of objective, neutral vantage point grounded in expertise rather than decisions are that are wholly subject to political pressure.”

Yet some Trump administration officials say they want more democratic accountability at the Fed.

In an interview with USA Today Vice President JD Vance said, “What people who are saying the president has no authority here are effectively saying is that seven economists and lawyers should be able to make an incredibly critical decision for the American people with no democratic input.”

And Stephen Miran, a top White House economic adviser, wrote a paper last year advocating for a restructuring of the Fed, including making it much easier for a president to fire governors.

The “overall goal of this design is delivering the economic benefits” of an independent central bank, Miran wrote, “while maintaining a level of accountability that a democratic society must demand.” Trump has nominated Miran to the Fed’s board to replace Adriana Kugler, who stepped down unexpectedly Aug. 1.

Trump has personally insulted Powell for months, but his administration now appears much more focused on the Fed’s broader structure.

The Fed makes its interest rate decisions through a committee that consists of the seven governors, including Powell, as well as the 12 presidents of regional Fed banks in cities such as New York, Kansas City, and Atlanta. Five of those presidents vote on rates at each meeting. The New York Fed president has a permanent vote, while four others vote on a rotating basis.

While the reserve banks’ boards choose their presidents, the Fed board in Washington can vote to reject them. All 12 presidents will need to be reappointed and approved by the board in February, which could become more contentious if the board votes down one or more of the 12 presidents.

“The nuclear scenario is … the reappointment of the reserve bank presidents and interfering with that, (which) would be the signal that things are truly going off the rails,” said Adam Posen, president of the Peterson Institute for International Economics.


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First place at stake for Jaguars vs. Colts

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How big is Sunday’s game for the Jaguars?

According to The Athletic, the Jaguars have an 83% chance of making the playoffs entering the weekend. That’s a pretty good bet. At 8-4, the Jaguars are currently in the third spot in the AFC.

However, Jacksonville stands a 42% chance of winning the division, slightly better than Sunday’s opponent, the Indianapolis Colts (8-4), who sit at 34% to win the AFC South.

With both games against the Colts still on the schedule and matchups with the struggling New York Jets, a trip to Denver to face the surging Broncos, and the season finale at home against the Tennessee Titans, the Jaguars need only to win the games they should win to make the playoffs.

Leaving the Colts games aside for the moment, if the Jaguars simply beat the Jets and Titans, they would have 10 wins. That is almost certainly enough to earn a postseason spot.

So, in a way, Sunday’s game against the Colts isn’t make-or-break. However, if the Jaguars want to win the division and host a playoff game, at least one win over the Colts is essential. Should the Jaguars win Sunday, they would hold a 1-game advantage over the Colts and, for the time being, hold the head-to-head tiebreaker over Indianapolis.

By one metric, the Jaguars can increase their playoff odds to 95% with a victory on Sunday. Even with a loss, they are a good bet to make the playoffs as a wild-card team. But the chance to start the postseason with a home game is a powerful advantage, one that division winners enjoy.

Health will be a major factor in Sunday’s game. The Jaguars hope to have wide receiver/kick returner Parker Washington and defensive end Travon Walker back in the lineup. Both missed some or all of last week’s game but practiced in a limited basis this week. Starting left tackle Walker Little and safety Andrew Wingard remained in the concussion protocol this week. Starting right guard Patrik Mekari returned from concussion protocol on Wednesday.

The Colts are also dealing with injuries. Cornerback Sauce Gardner did not practice this week, while quarterback Daniel Jones continues to play with a fracture in his leg.

The key matchup could be strength vs. strength. Indianapolis running back Jonathan Taylor leads the NFL in rushing with 1,282 yards, while the Jaguars are the league’s top rush defense, allowing opponents only 82.4 yards per contest. No running back has run for more than 90 yards against the Jaguars this season, and only one, Houston’s Woody Marks, has rushed for more than 70 yards in a game. Taylor averages nearly 107 yards per game this season.

The Jaguars last made the playoffs in 2022 in Doug Pederson’s first season as head coach. Liam Coen is trying to replicate the feat.

Interestingly, the game is one of three in the NFL this weekend with first place on the line.

The Baltimore Ravens host the Pittsburgh Steelers Sunday. Both teams are 6-6, and the winner will lead the AFC North. The Chicago Bears (9-3) also travel to Green Bay to face the Packers (8-3-1), with the winner taking the top spot in the NFC North.



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Supporters rally behind Ken Welch as re-election bid looms

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As St. Petersburg Mayor Ken Welch prepares to seek a second term, some political observers have questioned whether his first four years delivered enough progress to merit re-election.

Longtime community leaders like Rep. Michele Rayner, Pinellas County Commissioner Rene Flowers and Rev. J.C. Pritchett say the answer is already clear: No other candidate brings the same mix of lived experience, policy acumen and unshakable commitment to the city’s underserved neighborhoods as Welch.

Elected in 2021 as the city’s first Black Mayor, Welch came into office with a sweeping promise to build an inclusive St. Pete. His agenda emphasized affordable housing, equity and the long-delayed redevelopment of the Historic Gas Plant District — the once-thriving Black neighborhood razed in the 1980s to make way for Tropicana Field

The symbolism of Welch — whose family lost their lumberyard business in that very neighborhood — taking the lead on its reimagining is not lost on his supporters.

“The Gas Plant is in his fingernails,” said Pritchett, a longtime pastor and civic leader. “He realizes how sacred that is and how important that is. He has heard the stories, from his family and from residents, about what it was like to be displaced from your home and be promised for almost 50 years an answer and it not be delivered.”

While some recent coverage has spotlighted perceived stumbles — including storm recovery challenges, City Hall turnover, and the Tampa Bay Rays’ withdrawal from the redevelopment deal — Welch’s allies say the record tells a different story: a leader navigating complex crises with pragmatism, restraint and a steady hand.

Pritchett, whose ministerial alliance endorsed Welch in 2021, said the Mayor remains the right leader for a city on the edge of transformation.

“I think he ought to be able to have the opportunity to really lean into the work that he started,” he said.

Already, City Council member Brandi Gabbard has announced she will run against Welch. A well-known Realtor and moderate Democrat, Gabbard is considered a credible contender with appeal across ideological lines. She may not be the only challenger; former Governor and U.S. Rep. Charlie Crist is also reportedly weighing a bid for the office.

Rayner, who has known Welch for much of her life, said he is uniquely suited to carry forward the Gas Plant vision because of his roots in the community.

“He understands the nuances of what this means, not only for St. Pete at large but for Black people who did not get what was owed to them,” Rayner said. “He’s able to navigate the sensitivities around that issue in a way no one else can.”

Under Welch’s leadership, the city launched an ambitious redevelopment plan with the Tampa Bay Rays and Hines to transform the 86-acre site into a new neighborhood featuring affordable housing, a ballpark and cultural amenities honoring the displaced Gas Plant community.

But after hurricanes battered the city last year, causing widespread damage, the Rays pulled out of the agreement in early 2025 following Pinellas County and City Council’s decision to slightly delay bond votes.

Critics have seized on the collapse as a political liability, but supporters argue the narrative is misplaced. They say the Rays walked away from a handshake deal, not the other way around.

“When the vote happened and we thought we had a deal, Stu (Sternberg), the Mayor, and Brian Auld and others went out to celebrate, and we hugged and we shook hands,” Pritchett said. “Only to find that in March the Rays walked away from the handshake and from the covenant and from the deal.”

“It left the residents hanging, and our community is still healing from that,” he added. “They left hurt and a void and an ‘I told you so’ that has existed since 1978. This Mayor did not pause, this Mayor was not caught like a deer in the headlights. This Mayor said, ‘let’s pivot and find a solution to deliver to the residents a development for the future.’”

Flowers, a longtime Welch ally and successor after his time on the County Commission, rejected claims that storm damage or financing delays doomed the deal as “hogwash.” Her family lost a dry-cleaning business at the Gas Plant District, and she praised Welch’s efforts to revive the community’s vision for the district.

“When the deal fell through with the Rays, and of course the Gas Plant District was a part of that, initially I was very angry,” Flowers said. “I cannot tell you the number of hours and the amount of time, the amount of documents that we had to peruse through, meetings to attend and briefings for almost two years. The amount of money that’s put out on the front end with bond counsel, legal counsel, the Sports Authority.” 

Flowers maintains that damage to Tropicana Field’s roof and facilities was out of anybody’s control, and while the timing was unfortunate, the situation did not delay plans for a new state-of-the-art facility.

“That facility would have had to come down anyway, No. 1,” Flowers said. “And No. 2, the city had insurance on the facility. So it would have had to have been repaired in order for them to finish out playing in 2026, which is what is happening right now.”

“I’m sorry, I’m just calling it hogwash,” she said. “That was hogwash to say, you know, costs went up and this and that and the other. But they could never show us on paper where their contractor and their developer said it went from this many million to this much. They couldn’t show it because it didn’t exist.”

With development rights now back in the city’s hands, Welch is pushing forward. He’s prioritized building affordable senior housing, expanding the Woodson African American Museum, and exploring new convention and mixed-use options. 

A new request for proposals is expected to be finalized early next year after the City Council requested additional time for potential developers and pumped the brakes on a more aggressive timeline set by Welch this year.

“He’s going to make a decision sometime in January or early February,” Flowers said. “But that’s on those 86 acres, we can move forward with that, we don’t have to wait and see what’s going to happen with the Rays.”

“We don’t have to focus on Tropicana Field until the new owners make their play,” she said. “That’s up to them. But what we can focus on is the Gas Plant district. They’re going to be playing in that dome, we know that, through 2026. They may have to play there a little longer because wherever they decide to build they’ve got to build it before they can go.”

Beyond the Gas Plant, Welch’s administration has advanced several measurable goals. In 2024 alone, the city supported 281 new affordable housing units, helped 193 homeowners with essential repairs and assisted 87 first-time buyers with down payments. His team launched a $3 million utility relief program that served more than 7,600 renter households and invested $1.5 million into minority- and women-owned small businesses through the South St. Pete CRA.

When Hurricanes Helene and Milton hit within weeks of each other last year, Welch led a cleanup effort that cleared more than 2 million cubic yards of debris in under 90 days and secured $159 million in federal recovery funds. Critics were quick to criticize the speed of the cleanup, they even labeled the debris “Welch piles,” but progress reports show the city met or exceeded its benchmarks, a point his supporters say speaks to his quiet effectiveness.

“Besides ambition, I would like to see opposing candidates point to the issues that would make one decide that he should not be re-elected for another four years,” Pritchett said. “If you want to say it’s hurricane debris, so be it, but every time there’s a challenge he’s delivered.”

Welch has also been criticized for complying with a state order to remove intersection murals featuring racial justice and Pride themes, a decision that drew accusations of cowardice from some activists. Supporters say that view ignores his duty to protect the city from multimillion-dollar funding cuts threatened by the Florida Department of Transportation for noncompliance.

“Activists and community leaders have the privilege of breaking the law and challenging Tallahassee’s decisions,” Pritchett said. “The Mayor has taken an oath to follow the law and to be an example of civic responsibility. It’s performative political rhetoric to suggest the Mayor would break the law and lay over the murals to protect them temporarily from being removed.”

Rayner agreed, describing Welch’s approach as “principled and pragmatic.” His creation of the Office of Equity and Inclusion, and continued support for leadership positions like the city’s LGBTQ+ Liaison reflects his commitment to inclusion despite popular rhetoric trumpeted by right-wing politicians. Those efforts have helped the city maintain a perfect score on the Human Rights Campaign’s Municipal Equality Index.

“He’s not kowtowing to bullying out of Tallahassee,” Rayner said. “He is answering the call of the people that elected him and not answering the call of some performance politics of the state legislature. What I appreciate about Mayor Welch is he doesn’t say what is politically advantageous or expedient. He is very principled and character-driven. And I think that’s why you see him do the things that he does.”

Welch’s allies also reject claims of a toxic workplace culture at City Hall, citing the Mayor’s adherence to process. He placed his former Deputy Mayor Stephanie Owens on leave during an internal investigation, prompting her to resign amid bullying allegations. Former Communications Director Janelle Irwin Taylor, who is now a senior staff member for Florida Politics, leveled the allegations against Owens.

Former Managing Director of Economic and Workforce Development Brian Caper, one of the city leaders behind work to redevelop the Historic Gas Plant District and on the canceled deal with the Tampa Bay Rays, also resigned his position after findings that he sexually harassed a subordinate in his department.

“Public service is like any other sector,” Pritchett said. “When a complaint is filed the HR department investigates and interviews. Unions and contracts are not controlled by the Mayor. Following the advice of legal and following proper procedures is the responsibility of the Mayor for the hundreds of employees of the city.”

As Welch positions himself for re-election, his campaign is expected to emphasize results over rhetoric: a city that has rebuilt from two major storms, launched major equity and resilience initiatives, and remained on strong fiscal footing amid statewide political turbulence.

“He measures twice and cuts once; he really wants to make sure he’s getting things right for the people,” Rayner said.



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Roger Chapin, Mira Tanna battle in Orlando City Council runoff election

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Roger Chapin and Mira Tanna are going head-to-head in Tuesday’s Orlando City Council runoff after a margin of only 14 votes separated them in last month’s crowded General Election.

Chapin holds the big fundraising edge and the advantage of having name recognition as the son of former Orange County Mayor Linda Chapin. He also carries the support of the establishment, including Orlando Mayor Buddy Dyer and incumbent City Commissioner Robert Stuart, who didn’t seek re-election.

Tanna’s strengths are her grassroots campaign and the endorsements of popular Orlando Democrats like U.S. Rep. Maxwell Frost and state Rep. Anna Eskamani, who are lending their support to help her knock on doors and engage with voters.

Early voting at the Supervisor of Elections office, 119 W. Kaley St., runs 9 a.m. to 3 p.m. on Saturday and 11 a.m. to 3 p.m. on Sunday. Election Day precinct polls are open 7 a.m. to 7 p.m. Tuesday.

Chapin and Tanna are both Democrats, and the winner will be the first new City Commissioner to represent District 3 in 20 years. The four-year term currently pays $79,343 annually for the nonpartisan seat. District 3 spans College Park, Audubon Park, Baldwin Park, Coytown and other downtown area neighborhoods north of Colonial Drive.

Tanna works as the Orlando city grants manager. She commutes to work on the bus, and is focused on fixing Central Florida’s public transit.

Chapin is a public affairs and public relations consultant. He said his biggest client is Mears Transportation, his former employer. His priorities include the Main Street Districts on Ivanhoe Boulevard and Edgewater and Corrine drives.

In making his case to voters, Chapin pointed to his long résumé of public service. After a failed bid for Orlando City Council in 2002, he got involved on the Municipal Planning Board, Downtown Development Board, Orlando Utilities Commission and more.

Chapin argues he is the most experienced candidate in the race and would “govern from the middle” to work with both Republicans and Democrats, citing Dyer as an example of a politician who can work both sides of the aisle to get things done.

Tanna’s supporters say she is the right fit and has the vision to help make changes as Orlando faces big challenges in a lack of affordable housing and congested traffic. They also say bus routes and SunRail don’t meet enough people’s needs. Tanna also pointed to her city career, saying she knows City Hall and is ready to jump in on Day 1.

Tanna’s endorsements include the Young Democrats of Orange County, Ruth’s List, the Sierra Club, the Orange County Classroom Teachers Association and Ruth’s List Florida. Endorsements also include state Sens. LaVon Bracy Davis and Carlos Guillermo Smith, as well as state Reps. Johanna López, Rita Harris, RaShon Young. Orange County Commissioners Nichole Wilson and Mike Scott and Orange-Osceola State Attorney Monique Worrell are also backing Tanna.

Chapin won endorsements from the Orlando Sentinel, the Central Florida Hotel and Lodging Association, the Orlando Regional Realtor Association and unions representing police and fire. Orange County Sheriff John Mina also is backing Chapin.

Chris Durant, who placed third, just out of reach in the Nov. 4 General Election, has endorsed Chapin and is being paid $1,500 to join him on the campaign trail.



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