Republican presidential nominee Donald Trump expressed his belief that he should have a say in the Federal Reserve’s decisions on interest rates. Speaking at a news conference at his Mar-a-Lago residence in Florida, Trump emphasized his success in business and stated that he believes he has better instincts than many individuals at the Federal Reserve or its chairman.
Reports earlier in the year suggested that advisors close to Trump were considering various changes for the central bank if he were to be elected in November. Some of the proposed changes include requiring the Fed to consult with the president on rate decisions, involving the White House in regulatory changes, and having the Treasury Department oversee the Fed’s actions.
During his presidency from 2017 to 2021, Trump was critical of Chair Jerome Powell, whom he appointed in 2018. Trump mentioned that he had disagreements with Powell, criticizing the Fed for being late in its decisions and attributing it to a gut feeling.
While Fed officials stress the importance of the central bank’s independence from political influence, Trump’s opponent, Vice President Kamala Harris, believes that the Fed should make decisions independently. Trump, however, indicated that he has a good relationship with Powell but suggested that his team is considering changes that may involve not reappointing Powell when his term expires in 2026.
The Fed has faced criticism for its handling of interest rates, with some calling for rate reductions. Trump has been vocal in his preference for lower interest rates and has criticized the Fed for raising rates in 2018. The Fed raised benchmark interest rates by 5.25 percentage points from March 2022 to July 2023 to combat inflation, and it is expected to start reducing rates in September.
