Trump Wants a Say in Federal Reserve Interest Rate Decisions

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In 1951, Treasury-Federal Bank Agreement It established the independence of the Federal Reserve System and gave the agency more power. Set the interest rate Without the influence of the executive branch. Now, the Fed Lowering interest rates To Avoid a possible recessionRepublican presidential candidate and former President Donald Trump wants the president to have more of a say in interest rate policy.

“I think the president should at least have a say in setting interest rates,” Trump said at a Thursday press conference at his Mar-a-Lago resort in Palm Beach, Florida.

Trump added that the Fed has “made a lot of mistakes,” pointing to Trump’s appointee, Fed Chairman Jerome Powell. Nominated for the position In 2017, “things are going to be a little slower.”

Related: Jamie Dimon says a mild recession is still possible: ‘There’s a lot of uncertainty out there’

Trump said setting interest rates was more a matter of instinct.

“In my case, I’ve made a lot of money and been very successful,” Trump said. “I think in many cases I have better instincts than the people who are on the board of the Federal Reserve and who become its chairman.”

^{Donald Trump holds a press conference at his Mar-a-Lago estate on August 8, 2024. Photo by Joe Raedle/Getty Images}

Powell and Trump were at odds during Trump’s presidency from 2016 to 2020. He publicly criticized Powell. He repeatedly criticized the Fed’s policies and failed to raise or lower interest rates sufficiently at various points during his term. To the reporter and During the speech.

Related: JPMorgan CEO Jamie Dimon provides policy advice to Donald Trump and Kamala Harris

Powell’s term ends in 2026, so the next president will choose the next Fed chairman. President Trump said in February: Not reappointed If Powell wins, he will said He allowed Powell to complete his term, and Powell said He intends to remain in office until the end of his term.

Following President Trump’s comments on Thursday, Jared Bernstein, chairman of the White House Council of Economic Advisers, said: Repost May’s analysis of the importance of an independent central bank in X.

“History has shown that ignoring this lesson or reversing the hard-won progress of the past half century will have lasting, damaging and inflationary consequences,” Bernstein wrote, citing the report.

Our White House CEA Analysis of the importance of central bank independence:
“History has shown that ignoring this lesson or reversing the hard-won progress of the past half century will have lasting and damaging inflationary consequences.”https://t.co/v5szS6FPAv

— Jared Bernstein (@econjared46) August 8, 2024