Republican US presidential candidate Donald Trump said yesterday, that US presidents should participate in decisions made by the Federal Reserve (the central banking institution of the US). This is the clearest indication yet of his interest in undermining the independence of the US Central Bank if he returns to the White House, Reuters reported, BTA reported.
„I feel the president should at least have the right to speak his mind (on these issues)," the former president told reporters at his Mar a Lago residence in Florida. “I think in my case I've made a lot of money, I've been very successful, and I think I have a better instinct than, in many cases, people who would be (on the board of) the Federal Reserve or its chairman.
Trump's allies have drawn up proposals that would try to undermine the Federal Reserve's independence if he wins, the Wall Street Journal reported in April. The Trump campaign distanced itself from the April story in the print edition. But his words yesterday showed that he stands by one of the main thrusts of the proposals: If he becomes president, Trump would have to be consulted on interest rate decisions and proposals for Federal Reserve banking regulations would have to be reviewed by the White House.< /p>
The chairman of the Federal Reserve and the other six members of its governing board are nominated by the president and confirmed by the US Senate. But the Federal Reserve enjoys considerable operational independence to make policy decisions that have a huge impact on the direction of the world's largest economy and on global asset markets. The next president – Trump or Democratic candidate Kamala Harris – will have a chance to choose the next chairman of the Federal Reserve during the first two years of his term.