Trump hoping Powell leaves Fed board when his time as chair ends: Brookings' David Wessel

Summary

David Wessel and Nick Timiraos discuss the DOJ probe into the Federal Reserve and President Trump's pressure on Chair Jay Powell. Wessel warns that undermining Fed independence could lead to more inflation and make the U.S. a less attractive investment destination. Timiraos outlines ways the pressure campaign could backfire, including a harder confirmation process for the next Fed chair and Powell potentially staying on the board.

• The segment focuses on the DOJ probe and political pressure surrounding the Federal Reserve.
• David Wessel says Powell has fought back more forcefully than before.
• Wessel argues Fed independence has served the U.S. well and that eroding it could raise inflation and reduce U.S. investment appeal.
• Nick Timiraos says the pressure campaign could backfire by complicating confirmation for the next Fed chair.
• Timiraos notes moderate Senate Republicans may resist confirming a Fed chair tied too closely to Trump.
• Timiraos says Powell could remain on the Fed board to protect the institution.
• The discussion is mostly about institutional and monetary-policy risk rather than specific securities.