'That is to misunderstand entirely the role of appointed officials in a democracy,' Summers said.
Regardless of what Trump says or does, Summers said the Fed and its appointed members should not seek to "constrain and influence the behavior of the president of the United States."Summers argued that Fed officials making monetary policy to achieve certain political outcomes would be akin to non-elected military leaders ignoring the directives of the president.
Summers calls Dudley, who led the New York Fed from 2009 to 2018, a friend, saying he's "admired many things" Dudley has done. But Summers said Dudley should make clear his beliefs are entirely his own and that "he has no basis for believing that any of the kinds of things he's thinking about are being considered or debated anywhere or are in the Fed's reflection process.
The Fed's next monetary policy is in September and the market widely believes central bankers will reduce rates by a quarter-point again, after cutting rates by the same amount last month, the first such move in more than a decade.
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