Douglas Elmendorf, an economist at Harvard and former director of the nonpartisan Congressional Budget Office, said that Trump's demand for the Fed to cut its key rate by 3 percentage points would overstimulate the economy, lifting consumer demand above what the economy can produce and boosting inflation - similar to what happened during the pandemic.
Looking at what it could mean for the Fed to lose its independence
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Elmendorf noted that Trump's actions regarding economic data could be tempered by Congress, which could put limits on Trump by whom he chooses to lead federal agencies, for example.
Donald Trump follows his own playbook of discrediting unfavorable data
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