Bank of New York Mellon Corp.’s top executive called the US Justice Department’s attacks on the Federal Reserve “counter-productive” to the Trump administration’s goals of boosting the US economy and prioritizing affordability.
The US central bank’s independence has long served economies and capital markets well, BNY Chief Executive Officer Robin Vince said on a conference call with members of the media Tuesday, and the shaking of that foundation of the US bond market could actually be counter-productive to the White House’s goals.
“Questioning one of the tenets that underlies the bond market runs the risk of actually doing the opposite of that,” Vince said. “Doing things that are going to detract from that agenda don’t seem like the best things to do now.”
Federal Reserve Chair Jerome Powell said Monday that the Department of Justice had served the central bank with grand-jury subpoenas threatening a criminal indictment, though President Donald Trump denied having knowledge of a DOJ investigation.
Written by: Paige Smith @Bloomberg
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