Donald Trump’s advisers are putting together a plan that would give the former president unprecedented influence over the Federal Reserve, including a provision that would make him an “executive” member of the central bank’s board if re-elected, The Wall Street Journal has learned.
The top-secret plan is part of a 10-page document that suggests Trump would be consulted on interest rate decisions if elected. In addition, the Treasury Department would be used as an additional check and balance to oversee the Fed’s bond-buying activities.
In addition to these proposals, the draft also includes that
Trump could remove Fed Chairman Jerome Powell from office even before his term expires in 2026,
and could require Fed policy to be aligned with the administration’s goals.
The paper recalled that although Trump chose Powell to head the Fed in 2017, during his time in office he personally harshly criticized him and other central bank leaders when interest rates were raised, and he reportedly considered replacing Powell even then.
Trump said a few months ago that he would not re-nominate Powell and said the Fed would cut interest rates to help re-elect Joe Biden.
Trump campaign officials told the paper that the draft proposals could not be considered “official.”
The paper could not find out whether Trump knows and supports the proposal, but according to some sources, they have obtained his blessing.
According to CNBC, it’s unclear what authority the president would have to take such bold action at a Fed that has traditionally tried to insulate its operations from outside political pressure.
A Fed spokesman declined to comment on the report.
