@jumpyjackrabbit

The One Big Beautiful Bill Act (OBBBA), passed in July, will lock in high deficits for the next decade. Unless interest rates fall, this will mean higher interest payments and further squeeze other uses of government revenue. As a result, the White House has repeatedly pressured the Fed to lower interest rates and called for the resignation of Fed Chairman Powell. These threats to the Fed's independence escalated further in August with the removal of Lisa Cook, one of the six current members of the Fed's seven-member Board of Governors. [11] While this may benefit elected officials in the short term, the weakening of the Fed's independence increases the risk of high inflation and monetary weakness in the long term.

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