US Economy Recovering with Fed Challenges

The article discusses how the US commercial office property market is recovering from the crisis caused by the COVID-19 pandemic and high interest rates. The pandemic led to a shift towards working from home, resulting in a slump in office demand, which was further exacerbated by aggressive interest rate hikes in 2022. However, the article suggests that the crisis appears to be easing, with the torment caused by COVID-19 and high interest rates seemingly over. The recovery is attributed to various factors, including the adaptation of the commercial property sector to the new normal. The article highlights the challenges faced by commercial-property investors, lenders, and smaller banks that were heavily exposed to the sector.

The article assesses the case against Lisa Cook, a governor of the Federal Reserve, who is accused of mortgage fraud by Bill Pulte, head of the Federal Housing Finance Agency. The allegations, which began with a tweet by Mr. Pulte, claim that Ms. Cook falsified bank documents to acquire more favorable loan terms. President Donald Trump has sought to sack her, but she has refused to resign. The courts will now consider the evidence required to remove a Fed governor 'for cause'. The article examines the strength of the evidence and the potential implications if the claims are true.

The Economist's finance and economics section covers various news and analysis, including the US office market recovery, the threat of deflation in Asia, and the potential consequences of Trump's actions on the Federal Reserve. Other topics include the blurring of lines between gambling and investing, the case against Lisa Cook, and the performance of China's stock market despite its economic struggles.

The article discusses the potential consequences of Donald Trump's actions on the Federal Reserve, specifically his claim of firing Fed governor Lisa Cook for alleged mortgage fraud. The author argues that Trump's war on the Federal Reserve could do serious damage to the economy if inflation starts to rise again. The article highlights the potential risks of Trump's interest-rate crusade and the importance of central-bank credibility. The author also notes that Trump's actions could lead to a loss of confidence in the Federal Reserve and potentially harm the economy.

The article discusses the potential consequences of Trump's crusade against interest rates and the importance of central bank credibility. It uses the analogy of taming a horse to explain how central banks can control inflation. The article argues that Trump's actions could undermine the credibility of the Federal Reserve, leading to unintended consequences. The author suggests that a credible central bank can achieve its inflation target without causing a recession, whereas Trump's interference could lead to a loss of credibility and potentially harm the economy.