Former President Donald Trump’s political operatives are working on a plan to grant him significant influence over the Federal Reserve, potentially appointing him as an “acting” central bank board member, according to a Wall Street Journal report.
The proposed plan, outlined in a secretive 10-page document, suggests that if Trump were to be re-elected, he would be involved in decision-making regarding interest rates. It also proposes that the Treasury Department would oversee the Fed’s bond-buying activities to provide an additional level of accountability.
Additionally, the draft suggests that Trump could have the power to remove current Fed Chair Jerome Powell from his position and ensure that the Fed’s policies align with the administration’s objectives. During his presidency, Trump publicly criticized Powell and other central bankers for raising interest rates and reportedly considered firing him.
Campaign officials for Trump have stated that the draft proposals are not official policy. It remains unclear what legal authority the president would have to implement such drastic changes to an institution like the Fed, which traditionally operates independently from political influence.
A spokesperson for the Fed declined to comment on the report.
Former President Donald Trump’s political operatives are working on a plan that would give him unprecedented control over the Federal Reserve, including the possibility of becoming an “acting” central bank board member. The plans, outlined in a 10-page document, suggest that Trump would be consulted on interest rate decisions and would have the power to remove current Fed Chair Jerome Powell from office. The Treasury Department would also oversee the Fed’s bond-buying activities to provide another layer of control. It is unclear what authority Trump would have to implement such drastic changes to the independent Federal Reserve, which traditionally operates free from outside political influence. It is important to note that the draft proposals should not be considered official and a Fed spokesperson declined to comment on the report.
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