Trump’s political operatives are putting together a plan that would give him input into the Federal Reserve, including making him an “acting” central bank board member, according to the Wall Street Journal. Via CNBC:
The plans, which the Journal report described as highly secretive, are 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 protect its activities from outside political pressure.
I'm not going to pretend the Fed isn't political. Of course it is! But to allow a greedy crook like Trump to manipulate the markets at will? Not good.
