Donald Trump’s aides have drawn up secret plans to oust the chairman of the Federal Reserve and allow the president to set interest rates, according to reports.
Allies are said to have drawn up a range of proposals for the way monetary policy could be run in a second Trump administration, including rolling back the independence of the central bank, which has been critical to the functioning of the economy and financial system in recent decades.
Supporters of the Republican candidate have compiled a 10-page document with a new vision for the running of the central bank and monetary policy, according to the Wall Street Journal.
The Potato has been demanding that central banks should lose their independence. Interest rates should be set by politics he says. No doubt he’ll find some reason why this is wrong though.
And the RN in the 1920s had a contingency plan to take on the USN in the Atlantic. Not necessarily a secret plan to do it, just a base-covering exercise. If there’s a clique in Trump’s camp to do this thing, first they have to convince him. This is a run it up the flagpole job to gain influence inside the campaign. Many of those folks have joined the bandwagon in the hope of preferment should Trump win. So it’s not much of a story and even |Murphy doesn’t need to square this particular circle based on this tale.
Of course according to his opponents Trump intends to suspend democracy, set up as a dictator, re-impose slavery (yes, really) and jail all his enemies. You’d think that would matter more than tinkering with the base rate.
Remind me again how well things have gone with the Fed in charge?
And just where did that one size fits all 2% inflation rate target come from?
Based on what evidence?
Hear me out, but what if our economic policy was to kill bankers with lions?
Whilst it would be interesting to see how Spud reconciles this, the fact is that Trumps economic policies are pure burning garbage (and I’m a Republican).
The Fed has made many many errors, but IMHO Powell has walked his tightrope reasonably well – keep the politicians happy by not causing a bad recession (which is probably needed to bring inflation under control), keep the Treasury onside by dampening Treasury yields, avoiding a banking crisis by propping-up asset values, and QT is proceeding better than expected.
Recall that Trump tried to strong-arm Powell into reducing the FFR in 2018 when it was 2.5%. ZIRP is an economy destroyer, and having Trump in charge genuinely scares me. You cannot run an economy the same way he has run his RE businesses.
Immigration and foreign policy were fine. But unfortunately the only difference between Trumps economics and Bidens is where the trillion dollar deficits get spaffed.
Just how do you replace the chairman anyway?
If he’s appointed by the president, normally he would have the power to say “I want your resignation”. The president would of course then be on the hook for finding a replacement that could get by Congress, but that’s not inconceivable.
Or is he one of those people that’s selected by the blob?
So can we now refer to “Richard Murphy, author of Trump’s economic policies”?
They are obviously concerned that the legal cases aren’t working so time to start on the smear campaigns
Politics has always been the driver behind setting interest rates.
@Henry
+1 Fed did a better job than “ransitory” Andrew Bailey, failed Ex-CEO of FCA, BoE Governor