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Trump Advocates for Presidential Influence Over the Federal Reserve

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Trump’s Aspirations for Influence Over the Federal Reserve

Trump's Aspirations for Influence Over the Federal Reserve

Donald Trump is taking a more assertive stance regarding the Federal Reserve, openly expressing a desire for greater presidential influence over the central bank’s decision-making process. This development comes amid ongoing debates about the Fed’s political independence and its critical role in shaping monetary policy.

Trump Advocates for Presidential Influence Over the Federal Reserve

Trump has been vocal in his criticisms of Jay Powell, the current chair of the Federal Reserve, at times labeling him a “bigger enemy” than Chinese President Xi Jinping. Such comments have fueled speculation regarding the future of the Fed under a potential second Trump presidency. Friday’s remarks mark his most explicit assertion that the Fed should not retain sole authority over monetary policy decisions, posing a challenge to the established norms that have governed the institution for decades.

“I believe the president should have at least some say in the Federal Reserve’s operations,” Trump stated during a news conference at his Mar-a-Lago estate. “Yes, I feel very strongly about this.” While he did not elaborate extensively on his vision for the Fed’s operation, it is known that he generally advocates for lower interest rates and a weaker dollar. He targeted a particular grievance regarding how interest rates are set, arguing that Fed decisions often rely on “gut feelings” rather than sound economic principles. Trump claimed that Fed policymakers frequently “get it wrong.”

“I believe I possess a better instinct than many of the individuals who serve on the Federal Reserve, including the chairman,” Trump remarked, adding that his business acumen has proven profitable over the years.

During his presidency, Trump consistently expressed frustration with Powell, particularly when the Fed opted to maintain higher borrowing costs than he preferred. He has also voiced concerns that an anticipated rate cut before the upcoming Election Day could unfairly advantage Kamala Harris and other Democratic candidates.

Trump’s latest comments follow his recent interview with Bloomberg Businessweek, where he indicated that Powell could retain his position “if I thought he was doing the right thing.” Furthermore, a report from The Wall Street Journal in April revealed that Trump’s allies are looking for ways to diminish the independence of the Federal Reserve.

Trump Advocates for Presidential Influence Over the Federal Reserve

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