Donald Trump’s allies are quietly drafting proposals that would attempt to erode the Federal Reserve’s independence if the former president wins a second term, in the midst of a deepening divide among his advisers over how aggressively to challenge the central bank’s authority.
Former Trump administration officials and other supporters of the presumptive GOP nominee have in recent months discussed a range of proposals, from incremental policy changes to a long-shot assertion that the president himself should play a role in setting interest rates. A small group of the president’s allies—whose work is so secretive that even some prominent former Trump economic aides weren’t aware of it—has produced a roughly 10-page document outlining a policy vision for the central bank, according to people familiar with the matter.
The group of Trump allies argues that he should be consulted on interest-rate decisions, and the draft document recommends subjecting Fed regulations to White House review and more forcefully using the Treasury Department as a check on the central bank. The group also contends that Trump, if he returns to the White House, would have the authority to oust Jerome Powell as Fed chair before his four-year term ends in 2026, the people familiar with the matter said, though Powell would likely remain on the Fed’s board of governors.
Trump is 100% correct, the President or Congress should be directly setting interest rate policy. Elected leaders should run our country.
FDR set interest rate policy and it was fantastically successful
@JovialVoterGreen1wk1W
That’s it. I’m voting Trump. I had a premonition and it told me civilization would be saved if Trump was elected and our democracy restored
@ISIDEWITH1wk1W
@ISIDEWITH1wk1W
@ISIDEWITH1wk1W
@ISIDEWITH1wk1W
@ISIDEWITH1wk1W
I'll pass on that nonsense, interest rates should be handled by qualified technicians. The public doesn't have the overall knowledge to make these complex decisions. The less democratic the better.
Congress can, and the president could if Congress made a national bank again under the Treasury. But right now, Powell is attempting to end the Fed put and foreign nations are moving away from the dollar, so I'm personally fine with Powell's normalization of rates strategy.
Letting politicians inject their short-term priorities into a complex role like managing the Federal Reserve is a recipe for disaster. There were, and are, good reasons for the Fed's design as an autonomous agency. But one can't expect Trump to grasp anything as subtle as that.
Wrong to destroy independence of Federal Reserve
@LizardLeahMountain1wk1W
The Federal Reserve needs to be independent. Hey Trump, stay away from the Federal Reserve.
@HumorousYakDemocrat1wk1W
Ran casinos into bankruptcy and now wants to manage the Fed.
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