Trump Hints at Politicizing Federal Reserve Decisions and Infringing on Central Bank's Independence If Elected

Benzinga

Former President Donald Trump suggested that U.S. presidents should have a say in decisions made by the Federal Reserve, indicating his interest in potentially infringing on the central bank's independence if he regains the White House. Trump, who believes his business success gives him better instincts than many at the Fed, aligns with proposals from his allies to erode the Fed's independence. Historically, such interference has led to economic challenges, as seen in the 1970s under President Nixon. Powell was appointed to the Fed board by Former President Obama and later chosen by Trump to lead the central bank in 2018. Trump quickly became critical of Powell due to the Fed's interest rate hikes during Powell's first year.

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00:00It's Benzinga, and here's what's on the block.

00:03Former President Donald Trump suggested that U.S. presidents should have a say in decisions

00:06made by the Federal Reserve, indicating his interest in potentially infringing on the

00:11central bank's independence if he regains the White House.

00:14Trump, who believes his business success gives him better instincts than many at the Fed,

00:19aligns with proposals from his allies to erode the Fed's independence.

00:22Historically, such interference has led to economic challenges, as seen in the 1970s

00:27under President Nixon.

00:29Powell was appointed to the Fed board by former President Obama and later chosen by

00:32Trump to lead the central bank in 2018.

00:35Trump quickly became critical of Powell due to the Fed's interest rate hikes during

00:39Powell's first year.

00:40For all things money, visit Benzinga.com.

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