President shouldn't prosecute Fed chair over construction costs: Former Fed Governor Larry Lindsey

Summary

Larry Lindsey, former Fed governor and The Lindsey Group CEO, discusses the Department of Justice investigation of the Fed chair over construction costs. He argues prosecuting the Fed chair is foolish and unlikely to proceed, and criticizes the Fed for past political behavior around rate decisions. The host notes that firing the Fed chair could hurt Treasury bond demand, but the market reaction has been muted.

• Larry Lindsey says prosecuting the Fed chair over construction cost overruns is foolish and unlikely to go anywhere.
• Lindsey argues cost overruns are common in Washington and not the Fed chair's direct responsibility.
• He criticizes the Fed's past political behavior, including delaying rate hikes ahead of the 2016 election.
• The host raises the risk that firing the Fed chair could make investors less willing to hold Treasury bonds.
• Market reaction to the DOJ investigation has been muted, suggesting investors expect it to go nowhere.
• The discussion focuses on Fed independence and political interference rather than specific stock or asset trades.