Anamika Dey, editor
Brief news
- Elon Musk endorsed the idea of presidential influence over Federal Reserve policy, responding positively to Senator Mike Lee’s call for the Fed to operate under presidential control.
- Jerome Powell affirmed he would not resign if requested by Trump, hinting at potential future tensions.
- Trump expressed a desire for presidential input on Fed policy, claiming his business success gives him better instincts than Fed officials.
Detailed news
The concept that presidents should be able to influence on Federal Reserve policy was supported by Elon Musk, CEO of Tesla and SpaceX. Musk is a wealthy backinger of Donald Trump, who was been elected President of the United States.
The “100” emoji, which is meant to show agreement, was shared by Musk on Friday in response to a social media post that was published on Thursday by Senator Mike Lee, a Republican from Utah, who advocated for the Federal Reserve to be operating under the control of the president.
“#EndtheFed” was the hashtag that Sen. Lee used to accentuate his post.
Even if it was brief, Musk’s statement is reflective of a larger pressure campaign on the independence of the Federal Reserve, which may take shape under the term of the next Trump.
Chair of the Federal Reserve Jerome Powell stated on Thursday that he would not resign from his position even if President Trump requested him to do so. Consequently, this marked the beginning of a relationship between the chair of the Federal Reserve and the president-elect that has the potential to become controversial once more.
It is the goal of the tradition of Fed independence to provide the Federal Reserve with the authority to make choices on monetary policy, such as whether to raise or reduce interest rates, for the sole purpose of determining the future health of the economy in the United States.
However, throughout his first term in office, Trump would not hesitate to deviate from the norm and openly criticize Powell and the judgments he made about policy.
During the course of the presidential campaign in 2024, Donald Trump frequently toyed with the concept of allowing himself to have a voice in the formation of Federal Reserve policy in the event that he were to win the presidency once more.
The statement was made by Trump in August during a news conference that took place at his Mar-a-Lago resort in Florida. “I feel the president should have at least [a] say in there,” Trump added. “I believe that in my situation, I was able to make a lot of money, I was very successful, and I believe that I have a better instinct than, in many cases, people who would be on the Federal Reserve or the chairman,” the speaker said.
Source : CNBC news
