Trump Allies’ Plan Would Weaken Fed’s Independence
Under the proposal, Fed Chair Jerome Powell could be removed before his term ends in 2026 and the central bank would have to consult Trump on interest rate moves.
BY REUTERS
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The allies of Republican presidential candidate Donald Trump are drafting proposals that would attempt to erode the Federal Reserve’s independence if he wins, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
A small group of the former president’s allies has produced a nearly 10-page document outlining a policy vision for the central bank, according to the report.
The group argues that Trump should be consulted on rate decisions and would have the authority to remove Jerome Powell as Fed Chair before his term ends in 2026, the report added.
The Journal said it could not determine if the former president was aware of or signed off on the effort, but some people close to the discussions believe the work has received his blessing.
Reporting by Niket Nishant in Bengaluru; Editing by Anil D’Silva. Copyright 2024. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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