Former President Donald Trump’s right-wing allies are reportedly devising a plan to grant the executive branch control over Federal Reserve policy decisions, reflecting Trump’s authoritarian ambitions for a potential second term.
The Wall Street Journal revealed that a secretive group of Trump supporters, including former administration officials, has crafted a document outlining proposals to influence the central bank’s actions, ranging from modest policy adjustments to granting the president a direct role in setting interest rates.
The group argues that Trump should have a say in interest-rate decisions and proposes subjecting Fed regulations to White House review.
Additionally, they suggest utilizing the Treasury Department to exert greater influence over the central bank’s operations and assert that Trump, if reelected, would have the authority to remove Jerome Powell as Fed chair before his term ends in 2026.
Trump’s contentious relationship with Powell, whom he appointed in 2017, has been marked by public criticism of the Fed’s interest rate policy. Despite claims of having the power to dismiss Powell, the Fed operates independently with limited congressional oversight.
Critics view the Fed’s recent interest rate hikes, aimed at curbing inflation, as misguided and potentially harmful to workers. Trump’s recent comments suggest suspicions of political motives behind the Fed’s decisions.
The revelation of Trump allies’ efforts to influence Fed policy underscores the former president’s authoritarian aspirations for a second term. With pending criminal charges and a campaign centered on promises of wielding unchecked power, Trump’s willingness to challenge institutional norms poses concerns about the erosion of democratic principles.
