Trump advisors are considering plans to dramatically revamp the Fed, WSJ report says

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Former US President Donald Trump speaks to members of the media at Manhattan criminal court in New York, US, on Thursday, April 25, 2024. 

Jeenah Moon | Via Reuters

Former President Donald Trump’s political operatives are putting together a plan that would give him unprecedented influence over the Federal Reserve, including a provision that could make him an “acting” central bank board member, according to a report from The Wall Street Journal.

That plan, which the Journal report described as highly secretive, is part of a 10-page document that suggests Trump — if elected — would be consulted on interest rate decisions. In addition, the Treasury Department would be used as an added check and balance to oversee the Fed’s bond-buying activities.

Along with those proposals, the draft contends that Trump could remove current Fed Chair Jerome Powell from office and require that Fed policy be aligned with the administration’s goals. While in office, Trump harshly criticized Powell and his fellow central bankers as they were raising interest rates and reportedly considered ousting him.

Trump campaign officials told the Journal that the draft proposals shouldn’t be considered “official.”

It’s unclear what authority the president would have to take such bold steps on a Fed that traditionally has sought to insulate its activities from outside political pressure.

A Fed spokesperson declined to comment on the report.

Read the original article here

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