Trump administration tests and tries to expand Executive power, says Eurasia Group
Donald Trump's government is experiencing a historic moment as it tests and attempts to expand the limits of Executive power in the United States. The assessment is from Christopher Garman, executive director of Eurasia Group, in an interview with WW.
Supreme Court and the Federal Reserve
Garman explained that the Supreme Court had already been consistently signaling that it sees the Fed (Federal Reserve) as an institution distinct from other government agencies.
"The Supreme Court has already been signaling that they see the institution of the American central bank, the Federal Reserve, as distinct from other agencies, that they have a special role, given their independence", he stated. Therefore, according to him, the decision that protects the Fed from interference by the Trump administration did not come as a big surprise.
On the other hand, Garman highlighted that there is still a conservative line in the Court that is partially sympathetic to the expansion of Executive power. However, this same Court imposed restrictions on other issues, such as the use of instruments to apply tariffs without the consent of the American Congress.
The analyst highlighted that the scenario is one of advances and setbacks for the Trump administration in institutional disputes.
Fed is far from being "safe"
CNN anchor Thais Herédia considered that, despite legal protection, the Federal Reserve is far from being completely safe. "What is happening is the institutional weakening of the United States. So, it's okay that the Fed becomes an island, but the island alone is not sustainable," she said.
In Herédia's assessment, the intense political pressure on the central bank could, in itself, call into question the institution's credibility.
The anchor argued that the best work of a central bank depends on the trust of economic agents to guide expectations about inflation and the future of the economy. She also highlighted that the Fed has just undergone a change of presidency with a director who intends to make radical changes in the institution's communication with the market.
"I think it is far from safe, becoming an island in the face of Trump's attack on institutions", he concluded.
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Source: CNN