Fed Dissent Will Raise Uncomfortable Questions: Jonathan Levin

Constructive disagreement about the direction of the economy is a welcome feature of America’s central bank. Unfortunately, a rare wave of dissents could be more about politics.

Economist surveys and futures markets overwhelmingly imply that the Federal Reserve’s rate-setting committee will opt to lower rates on Wednesday by 25 basis points to a target range of 4% to 4.25%. But President Donald Trump, who has relentlessly lambasted the leadership of Fed Chair Jerome Powell, has been lobbying for much deeper cuts. His appointees face implicit pressure to signal that they’re at least directionally aligned with the White House.

Specifically, Governor Christopher Waller ...