The Fed just ‘Trump-proofed’ itself with a unanimous move to preempt a potential leadership shake-up

Submitted ⁨⁨1⁩ ⁨week⁩ ago⁩ by ⁨MicroWave@lemmy.world⁩ to ⁨economics@lemmy.world⁩

https://fortune.com/2025/12/12/fed-independence-presidents-reappointment-board-governors-fomc-votes-rate-cuts/

The Federal Reserve’s early reappointment of its regional bank presidents took markets by surprise and eased concerns the central bank would soon lose its independence as President Donald Trump continues demanding steeper rate cuts.

On Thursday, the Fed announced 11 out its 12 bank presidents were re-upped, leaving out the Atlanta Fed chief role as Raphael Bostic had announced previously that he’s stepping down.

“The reappointments for 11 of the reserve bank presidents takes a risk off the table that the president or his appointment of a new chairman might disrupt the structure and governance of the system going into 2026,” Robert Eisenbeis, who previously served as director of research at the Atlanta Fed, told Fortune via email.

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Randomgal@lemmy.ca ⁨1⁩ ⁨week⁩ ago
Lmao you think this is going to stop the king? Wait until you have the ICEtapo dragging you off the offices.

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- RaoulDuke25@lemmy.dbzer0.com ⁨1⁩ ⁨week⁩ ago
  They’re rich white people, not poor brown people.
  
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- shalafi@lemmy.world ⁨1⁩ ⁨week⁩ ago
  Yes, this will stop him. Remember, Trump hates the Fed Chair, Jerome Powell, has spoken out against him many, many times. But he can’t fire him because such interference with the Fed would rock financial markets. It’s one of the rare times I’ve seen Trump have to just choke on it, powerless. LOL, I love imagining all the singing and dancing his handlers have to do to keep him from firing Powell. :)
  
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TheDemonBuer@lemmy.world ⁨1⁩ ⁨week⁩ ago
This is definitely a good thing, but if we can’t get competent leadership in Washington, it won’t matter. Just the interest payments on the Federal debt is approaching $1 trillion. That’s already almost 1/5 of all federal revenue. But the debt problem isn’t restricted only to the Federal government. Private debt is nearly 150% of GDP.

And do we want to reshore at least some key industries? What about our infrastructure? What about our aging power grid? What good is AI if there isn’t enough power to run the damn data centers. All of this is going to take a lot of money and most of that is going to have to be borrowed.

And I’m sorry but the god damned invisible hand of the free market ain’t going to do it. If the free market is so all knowing and wise, why hasn’t it kept our power grid updated? Could it be that the free market is too narrowly focused and short sighted? Hmm.

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- brucethemoose@lemmy.world ⁨1⁩ ⁨week⁩ ago
  I agree, but also this is an iffy example because power grids are relatively regulated, albeit in a patchwork way.
  
  Anyway, I’m pretty sure we’re doomed. Voters have repeatedly shown they will gratify immediate “feelings” over thinking in the longer term, and finally elected a regime that embodies that short term hype perfectly. And debt is a boring “long term” problem that doesn’t fit into a TikTok video.
  
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  - TheDemonBuer@lemmy.world ⁨1⁩ ⁨week⁩ ago
    
    It’s more regulatory capture and misaligned incentives than a pure “invisible hand” problem.
    
    Well, what’s your solution? I don’t think this is a terribly uncommon opinion, but I’m not exactly sure what the implication is. Eliminate all regulations? Eliminate government entirely, paving the way for an anarcho-capitalist utopia? I’m not sure I think it’s a good idea to eliminate all public oversight when it comes to something as important as our national power grid. Someone has to look out for the interests of the public and the nation, and I’m not sure private, for-profit interests can be counted on for that.
    
    That being said, I am totally in support of regulatory reform. Unnecessary and inconsistent regulations introduce all sorts of inefficiencies and costs. But all the more reason, in my opinion, for the Federal government to standardize, unify, and simplify regulations as much as possible across the country. Of course, that would require capable leadership, and we are woefully deficient there.
    
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- reksas@sopuli.xyz ⁨1⁩ ⁨week⁩ ago
  is it even possible to pay off debt like that faster than it grows? What will happen when its 4/5 of the revenue?
  
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