What awaits the Fed during a possible Trump era?
According to the Wall Street Journal newspaper; Former President Donald Trump’s team has prepared a nearly 10-page draft document laying out a new policy path for the Fed. Accordingly, it is envisaged that Fed Chairman Jerome Powell will be dismissed and Trump will have a say in interest rate decisions due to different influence mechanisms.
According to a report in the Wall Street Journal, former President Donald Trump is preparing a plan that will have a significant impact on the Fed.
The plans, which the newspaper describes as highly secret, are based on a 10-page document that claims that Trump will also be consulted on interest rate decisions if he is elected.
According to the news, in a scenario in which Trump is elected, the Treasury Department will be used as an additional check and balance point to supervise the Fed’s bond purchasing activities. Along with these proposals, the draft claims that Trump could fire current Fed Chairman Jerome Powell and require Fed policy to be aligned with the administration’s goals.
While in office, Trump harshly criticized Powell and other central bank officials for raising interest rates and was reported to be considering dismissing Powell.
A Fed spokesman declined to comment on the report.