While the White House attempted to assuage concerns by reiterating the president's support for the Fed's independence, the comments raise the spectre of a huge policy mistake made in the 1970s.
The Fed's independence is couched in the belief that for a central bank to achieve its aims — ensuring financial stability and long-term growth — it should be free from the pressure that might be exerted by politicians seeking to alter policy for their own ends, rather than putting the country's prosperity first.
Other incidents, including President George H.W. Bush complaining about the policies of his Fed chair, Alan Greenspan, have also occurred, but Bush's comments were far more muted than Nixon's extended pressure.
Defenders of Fed independence point to the Nixon example to support their argument that politicians should not attempt to tamper with monetary policy.
Speaking at a fundraiser in the Hamptons on Friday, Trump said he thought Fed Chairman Jerome Powell would favor cheaper money and not have such a heavy hand when it comes to interest rate hikes, according to Bloomberg, which cited three sources who attended the event.
The Fed has hiked its benchmark interest rate target five times since Trump took office in January 2017, compared with just once for his predecessor, Barack Obama.
This was not the first time Trump has taken Powell to task, though presidents often refrain from expressing public opinions on Fed policy.
Government bond yields edged lower following the report about Trump's latest comments, though at 2.83 percent.
The benchmark 10-year Treasury note has been heading lower over the past month, with the current yield the lowest since July 13.
Open Petri nets can be treated as morphisms of a category, which becomes symmetric monoidal under disjoint union.
Pushouts are defined only up to canonical isomorphism: for example, the place labeled in the last diagram above could equally well have been labeled or This is why to get a category, with composition strictly associative, we need to use isomorphism classes of open Petri nets as morphisms.
The theory of ‘structured cospans’ gives a systematic way to build symmetric monoidal double categories—Kenny Courser and I are writing a paper on this—and Jade and I use this to construct the symmetric monoidal double category of open Petri nets.
This is why I said Mike Shulman’s technique can be applied to get a symmetric monoidal bicategory from the symmetric monoidal double category of open Petri nets.