Former Treasury Secretary warns investors may be underestimating risks to Federal Reserve’s independence

Former Treasury Secretary Lawrence Summers warned that investors may be underestimating risks to the Federal Reserve’s independence, saying calm conditions could change fast. “We’re on the foothills of a credibility crisis” for the central bank, he said on Bloomberg Television’s Wall Street Week with David Westin, adding, “We are in completely unprecedented territory.” Summers pointed to several recent moves and proposals from President Donald Trump. He cited Trump’s push for interest-rate cuts of about three percentage points, “which no economist anywhere has endorsed”, and the president’s “harsh rhetoric” aimed at Chair Jerome Powell. He also noted the effort to remove...