Former President Donald Trump has proposed that presidents should have the power to influence the Federal Reserve's interest rate decisions, potentially challenging the central bank's political independence.
What Happened: Trump made this suggestion during a press conference in Palm Beach, Florida. He argued that the president should have a say in the Federal Reserve's decisions, indicating a possible policy shift that could affect the Fed's historical independence from politics, reported Politico.
"The president should have at least a say in there," said Trump. "I feel that strongly." He went on to tell his supporters that he had "made a lot of money" and was "very successful."
"I think I have a better instinct than, in many cases, people that would be on the Federal Reserve — or the chairman," said Trump.
During the press conference at his Mar-a-Lago estate, Trump, who had previously clashed with Fed Chair Jerome Powell, criticized the Fed Chair's timing on interest rate decisions. The former president also hinted at potential changes to Fed operations, including subjecting the central bank to review processes applicable to executive branch agencies.
The Federal Reserve, which has consistently maintained its need for operational independence from direct political influence, declined to comment on Trump's remarks.
Why It Matters: Trump's comments are not entirely surprising, given his past interactions with the Federal Reserve. In July, Trump had expressed his consideration of JPMorgan Chase & Co (NYSE:JPM) CEO Jamie Dimon for the Treasury Secretary position and assured that he would not seek to displace Federal Reserve Chair Powell before the end of his term.
In April, it was reported that Trump's allies were formulating plans that could potentially disrupt the independence of the Federal Reserve, if the former president were to be re-elected.
Furthermore, the controversial "Project 2025" by The Heritage Foundation, which included a section authored by a member of Trump's 2016 transition team, suggested a complete overhaul of the U.S.'s monetary policy. Trump has denied knowledge of the now-shelved agenda.
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal