Former US President Donald Trump speaks to the media at Manhattan Criminal Court in New York, US, Thursday, April 25, 2024.
Gina Moon | Via Reuters
Former President Donald Trump’s political operatives are developing a plan that would give him unprecedented influence over the Federal Reserve, including a provision that could make him an “acting” member of the central bank’s board, according to a report. report from The Wall Street Journal.
The plan, which the Journal report described as highly secret, is part of a 10-page document that suggests Trump – if elected – would be consulted on interest rate decisions. In addition, the Treasury Department will be used as an additional system of checks and balances to oversee the Fed’s bond-buying activities.
Along with these proposals, the draft argues that Trump could remove current Fed Chairman Jerome Powell from office and demand that Fed policy be aligned with the administration’s goals. While in office, Trump sharply criticized Powell and his central bank colleagues for raising interest rates and reportedly considered ousting him.
Trump campaign officials told the magazine that the draft proposals should not be considered “official.”
It is unclear what authority the president would have to take such bold steps against the Fed, which has traditionally sought to insulate its operations from outside political pressure.
A Fed spokesman declined to comment on the report.