If investors lose faith in the Fed, they may start demanding higher yields on long-term bonds. That could lead to an increase in the interest rate for mortgages, government debt and more.
Fed governors can only be fired for cause. “The extent to which there is cause is, at best, dubious,” said Karen Petrou of Federal Financial Analytics.
Several factors blunting the impact of tariffs could make it harder to notice the import taxes’ impact on inflation, even though they will likely cause the economy to slow.
Local and state funding, small donors, private foundations — all are stepping up to fill the gap left by sudden funding cuts from the National Endowment for the Arts.