Previously published on August 14, 2024 in
Trump Wants A Say In Framing Monetary Policy
These articles typically focus on China trade and economics, but former President Donald Trump’s comments on Federal Reserve (Fed) independence need attention and perspective. Legally, of course, the president has no role in setting monetary policy, and many believe the Fed should have complete independence from political pressure. Historically and practically, however, the president has always had great influence. In that respect what Trump seeks would constitute small change indeed.
The excitement started at a recent press conference. Trump, in response to a reporter’s question about how monetary policy is decided, said: “the president should at least have [a] say.” The former president than added, “I feel that strongly.” It also came out that Trump wants to give the president power to fire the Fed chairman at will. Presently, that power only comes at the end of the Fed chairman’s four-year term.
