Trump's Proposal to Influence Federal Reserve Sparks Debate

Former President Donald Trump has explicitly expressed his desire for the U.S. President to have influence over the Federal Reserve's decisions. This move raises concerns over the central bank's independence. Economists recall historical policy missteps when political pressure on the Fed led to significant inflation and economic turmoil.

Former President Donald Trump is advocating for presidential influence over the Federal Reserve, signaling a potential shift in central bank independence should he return to the White House.

Trump's statement on Thursday at his Mar-a-Lago residence highlighted his belief in presidential involvement in the Fed's interest rate decisions. This stance has stoked concerns of political meddling in monetary policy, akin to the economic missteps of the 1970s under President Richard Nixon.

The debate over the Fed's autonomy continues, with current Chair Jerome Powell's term expiring in 2026 and the potential for a Trump-appointed, compliant nominee raising alarms among economic experts.

(With inputs from agencies.)