Harmful Economic Policy and its Apologists (and a Dow Jones target number)
Suddenly, knowing some things about the Federal Reserve is very important. The latest gyrations in the financial markets were caused by Donald Trump's rediscovery of Fed Chair Jerome Powell as a political target. Trump's previous Fed-related rhetoric had generally followed the timeworn pattern set by most presidents: Blame the Fed for whatever bad thing was happening, make noises about how the Fed should stop being so obtuse, and then move on. Not this time. Now, Trump is openly talking about firing Powell, which is plainly illegal and is terrible in every substantive way as well. At some point, I will write at length about those substantive matters, but today's discussion is about a narrow slice of this story, which is how Trump's top economist is aiding and abetting Trump's economically destructive impulses. I wrote on April 10 about Trump's two highest profile economists, Peter Navarro (the anti-trade trade advisor) and Kevin Hassett. Hassett's jo...