Trump allies said to draft policy seeking to influence Federal Reserve – report
Donald Trump’s allies are reportedly discussing proposals that would challenge the Federal Reserve’s independence if the former president wins a second term. But his advisers are divided over how aggressive their proposals should be.
A small group of the president’s allies have drafted a roughly 10-page document setting out a policy vision for the Federal Reserve, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Among the recommendations: Trump should be consulted on interest rate decisions; Fed regulations should be subjected to White House review; and the administration might use the Treasury Department as a check on the Fed.
Also, the group argues that the former president, should he regain the White House, would have the authority to remove Jerome Powell as Fed chair before his term ends in 2026.
However, the WSJ couldn’t determine if Trump is aware of or has approved the document.
In a statement to the WSJ, Trump senior advisers said that “unless a message is coming directly from President Trump or an authorized member of his campaign team, no aspect of future presidential staffing or policy announcements should be deemed official.”
The reported proposals are already meeting with objections from Republican legislators. Senator Kevin Cramer (R-ND) told the newspaper he would oppose any efforts to challenge the Fed’s independence. “There’s a reason that there’s not just one decision maker — that there are safeguards built into a board of governors,” he said.
During his term as president, Trump repeatedly complained about the central bank not cutting rates and specifically blamed Powell, who Trump appointed as Fed chair in 2017.
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