The podcast addresses the escalating tensions between the Federal Reserve and the Trump administration, focusing on a grand jury subpoena served to Fed Chairman Jerome Powell. The discussion explores the unprecedented nature of a potential criminal indictment against a senior government official and its implications beyond central bank independence. Lev Menand, a professor at Columbia Law School, provides insights into the administration's motives, suggesting it's an attempt to remove perceived political opponents and intimidate others in government. The conversation also covers the legal proceedings surrounding Lisa Cook's position on the Board of Governors and the potential consequences of these actions on the Fed's independence and market stability. Additionally, they discuss the entanglement of monetary policy and bank regulation, arguing that these functions cannot be cleanly separated between the legislative and executive branches.
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