Part 3/4:
The role of the Federal Reserve and its independence in monetary policy is a key concern. Pompano notes the tension between the president's desire to be more involved in monetary decisions and the Fed's traditional independence. He suggests that the bond market may be a more significant force in shaping economic outcomes than any administration's policies.
The Importance of Local Governance
Pompano emphasizes that for many Americans, the decisions made by local governments, such as city councils, may be more impactful than those made at the federal level. He suggests that the Federal Reserve chair may be more important for investment portfolios than the president, highlighting the complexity of economic policymaking.
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