Key Capital Private - Investment Note: A History of Conflicting Views

Monetary policy has never been immune from politics.

In our latest Investment Note #31: A History of Conflicting Views, we revisit how US presidents from Johnson to Nixon strong-armed the Federal Reserve into lowering rates, often at the expense of long-term stability.

The parallels with today are striking:

·  Johnson wanted cheap capital for Vietnam and social programs

·  Nixon wanted a re-election boost

·  Trump wants structurally lower rates to ease America’s debt burden

History shows the Fed often bends. 

In our latest Investment Note, we revisit previous times a president has leaned on the Fed. For believers of independent monetary policy, the picture isn’t pretty.

Read this article and more in the link below.