- ORIGINAL NEWS
Trump advisors are considering plans to dramatically revamp the Fed, WSJ report says
- SUMMARY
Former President Donald Trump’s operatives have crafted a plan to dramatically increase his influence over the Federal Reserve, the nation’s central bank, if he is re-elected.
According to a leaked 10-page document obtained by The Wall Street Journal, the plan would give Trump unprecedented control over the Fed, which is typically independent of political interference.
It includes provisions that would: * Allow Trump to act as a member of the Fed’s board of governors, giving him a direct say in interest rate decisions.
* Require Fed policy to align with the Trump administration’s goals, effectively politicizing monetary policy.
* Give Trump the ability to fire Fed Chairman Jerome Powell, who has been criticized by Trump for raising interest rates.
The plan also calls for the Treasury Department to oversee the Fed’s bond-buying activities, adding another layer of political oversight.
Trump officials have downplayed the significance of the document, claiming it is not an “official” plan.
However, it sheds light on Trump’s intention to exert more control over the Fed and potentially dismantle its long-standing independence.
It remains unclear if Trump will implement these proposals if re-elected.
However, the document highlights his desire to increase his influence over monetary policy, which has traditionally been insulated from political pressure to maintain economic stability.
- NEWS SENTIMENT CHECK
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“Former President Donald Trump’s political operatives are putting together a plan that would give him unprecedented influence over the Federal Reserve, including a provision that could make him an “acting” central bank board member”
“That plan, which the Journal report described as highly secretive, is part of a 10-page document that suggests Trump — if elected — would be consulted on interest rate decisions”