Rather than grapple with the research demonstrating that climate change will diminish labor productivity, drag down economic growth, and reshape the geographic distribution of the U.S. labor force, the Fed is neglecting the impacts of climate change and the needed policy response.

Powell (wrongly!) assumes that if banks can get climate-risky assets off their balance sheets before they go bad, while also halting an extension of mortgage credit to climate-vulnerable communities, lenders will be safe and the Federal Reserve’s job will be done. www.citizen.org/news/from-wi...

Job cuts and consolidation may appear to satisfy the short-sighted cost cutting ruse of Elon Musk and DOGE, but weakening and further politicizing financial regulation will lead to a riskier financial system and more long-term economic pain for the average American.

The only time we should expect to see any pushback on the Trump Admin from the banking industry is if they come for their safety net (trying to end Fed as LOLR, limits on asset purchases, etc.). Seeing Wall Street as an ally in the Trump Admin is total wishful thinking (and terrible politics).

Powell’s Chairmanship ends in 2026. The Wall Street vs new right power struggle, the relative influence of Vance, Heritage, etc. (and if these people actually mean what they say), should be instructive as to who gets the job next.

New right think tank American Compass too has argued that the Fed, as currently constructed, is at odds with a right-wing vision of economic populism.
americancompass.org/the-new-righ...

In short, Project 20205 advocates for shrinking the money supply. Not so good for the ‘stock market go up’ theory of macroeconomics.

But we shouldn’t discount the role of the new right and the different course they are charting on macro policy. Project 2025 advocates the Fed end its lender of last resort function, limit balance sheet expansion, and even floats a return to the gold standard.