Introduces the topic: President Trump says he's not planning to fire Jay Powell, but a Justice Department probe into the Fed chair continues. The question of Fed independence came up in an interview with Carlyle CEO Harvey Schwartz.
Speaker1
Harvey Schwartz
I actually think all of this is reinforcing central bank independence. There is so much discussion about central bank independence... I think it's actually brought it to a peak in terms of a discussion.
Notes that President Trump dismissed the idea that curtailing Fed independence could lead to a weakening of the dollar and a spike in inflation.
Speaker1
The backlash against chipping away at Fed independence is real. Public awareness is now high, whereas a few years ago people wouldn't even know what the topic was.
Speaker2
Harvey Schwartz
This scrutiny could backfire and make it more likely that Jay Powell stays as a governor on the Fed board, which is counterproductive for President Trump's goals.
Scott Bessent (advisor) amended his comments about accountability, suggesting everyone needs to be accountable.
Speaker2
Harvey Schwartz
You can hold both ideas: agencies should be held accountable, but the method matters. Criminal investigations are a 'whole other world' compared to audits or hearings.
Harvey Schwartz
I believe you can hold these agencies accountable without interfering with their independence.