Post #1508 by Steve203 on the Macroeconomic Trends and Risks board

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Seems Greenspan was pretty good at bending to political influence. The #43 regime wanted to enact a string of "supply side" tax cuts, so Greenspan invented a scenario where a large volume of US Treasuries was desirable, and the path than #42 had the country on, of paying off the Federal debt, would cause problems.

More broadly, Presidents have been pressuring the Fed, and private companies, for decades. The process was called "jawboning".

Jawboning (usually uncountable, plural jawbonings)

Persistent persuasive talk, particularly (politics, economics) talk that includes implied threats of punitive action, such as tighter government regulation.

https://en.wiktionary.org/wiki/jawboning

Steve

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