Allies of Donald Trump are preparing a plan to erode the independence of the Federal Reserve (Fed), the central bank in Washington, if he returns to the White House after the elections in November, The Wall Street Journal reported on Friday, quoted by Reuters.
Donald Trump with Jerome Powell when he announced his nomination to lead the FedPhoto: Pablo Martinez Monsivais / Associated Press / Profimedia
The Wall Street Journal reports, citing sources familiar with the matter, that a small group of allies of the former Republican president has already drafted a 10-page document outlining a policy vision for the Fed.
The group argues that the US president should be consulted on policy-setting decisions and that Trump should have the authority to replace current Fed chairman Jerome Powell before his term ends in 2026.
Trump promoted Powell to the position of Fed chairman in 2018 but clashed with him shortly after appointing him to the position over his decision to raise interest rates during his tenure in the White House. Among other things, the former president said Powell was trying to derail the American economy and at one point called him an “enemy of the people.”
In February, the Republican presidential candidate said he would not nominate Powell for another term if he becomes president again and accused him of wanting to lower interest rates to help President Joe Biden campaign.
Trump is already talking to candidates to head the Federal Reserve
During the election campaign Trump blamed his Democratic opponent for inflation and made it a key issue in his campaign. He described Powell as a “political actor” who wants to help Biden.
The Wall Street Journal wrote in its Friday article that it could not determine whether the former president is aware of or has given his approval for the plan to limit the Fed’s independence, but people close to the discussions believe the task force has received his “blessing” .
According to the WSJ’s sources, Trump held informal discussions with his advisers about possible candidates to lead the Fed and asked several of his associates if they would be interested in the job.
Trump’s campaign team did not respond to a Reuters request for comment.
Tags: Donald Trumps allies preparing plans erode Federal Reserves independence Wall Street Journal
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