Former US Treasury Secretary Summers: Fed policy should not be subject to political interference, emergency rate cuts make no sense

Former US Treasury Secretary Summers warned against incorporating the President's influence in US monetary policy, stating that it would harm the economy. Trump had previously stated that the President should have a say in Federal Reserve policy. Summers pointed out that politicians have conflicts of interest in monetary policy, and central banks around the world have been granted independence. He mentioned Nixon's example, where loosening monetary policy led to an inflation cycle. Summers stated that an emergency rate cut makes no sense, as market volatility has eased. In conclusion, Summers warned against political interference in Federal Reserve policy