An effort to give Trump more say on ratesThis week, investors had planned to examine the latest inflation data, due out at 8:30 a.m. Eastern on Friday, for clues about when the Fed would start cutting interest rates.
The Wall Street Journal reports that allies of Donald Trump are devising ways of watering down the central bank’s independence if he is re-elected president.
But it also raises questions about whether such a plan is possible — or whether Trump’s Wall Street supporters would back it.
Among the most consequential would be asserting that Trump had the authority to oust Jay Powell as Fed chair before Powell’s term is up in 2025.
While Trump gave Powell the job in 2017, he has since soured on his pick for raising rates, and has publicly said he wouldn’t give Powell a second term.
Persons:
Donald Trump, Trump, Jay Powell, Powell, wouldn’t
Organizations:
Trump, Street Journal, Wall