Why Presidents Should Keep Their Hands Off the Fed
Trump’s Plans Stir Fears for Fed Independence,
Inflation
In Donald Trump’s first term, Fed Chair Jerome Powell
resisted his demands to lower rates, but if re-elected, Trump could replace him
in 2026
Trump Suggests That President Should Have a ‘Say’
in Interest Rates
Donald J. Trump said presidents should have input on
interest rates, a comment likely to stoke fears that he could try to limit the
Federal Reserve’s political independence.
The Threat of Trumpflation and a Fed War
https://www.project-syndicate.org/commentary/trump-inflation-fed-war-would-be-economically-financially-disastrous-by-j-bradford-delong-2024-05
https://www.project-syndicate.org/commentary/trump-inflation-fed-war-would-be-economically-financially-disastrous-by-j-bradford-delong-2024-05
Trump Allies Draw Up Plans to Blunt Fed’s
Independence
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….
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.
A Brief History of the Fed’s Uneasy Peace with the
White House
Central bankers are haunted by the 1970s and the
danger of political meddling in inflation-control policies.