According to BlockBeats, on August 10, former U.S. Treasury Secretary Lawrence Summers warned against allowing the president to interfere in monetary policy making, otherwise it would only hurt the economy over time. "It's a stupid game to get politicians involved, and the end result is higher inflation and a weaker economy," Summers said on Friday. The day before Summers made these remarks, Republican presidential candidate Donald Trump said he believed the president should have a "say" in the Fed's policy making.
As for the Fed's policy decision, Summers said that given that market volatility and stock market declines have eased since Monday, "on the facts at hand," any emergency rate cut is untenable. Nevertheless, Summers said that "a 50 basis point rate cut may be appropriate" at the September policy meeting. (Jinshi)