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Would Trump Move to Control the Fed?

·1 min

This week, investors are eagerly awaiting the release of the latest inflation data on Friday to gain insights into the Federal Reserve’s possible interest rate cuts. However, reports suggest that allies of the current US president are contemplating ways to weaken the central bank’s independence if he is re-elected. These potential changes could have significant implications for US monetary policy. One proposal is to assert that the president has the authority to remove the current Fed chair before the end of their term. Other ideas include increased White House scrutiny of Fed rules and greater involvement of the Treasury Department in overseeing the central bank. The ultimate aim is to give the president more influence over interest rates.