Challenging the independence of the Federal Reserve! Trump openly stated that the president should have a say in monetary policy

According to the Financial Channel APP, Republican presidential candidate Donald Trump stated on Thursday that he should have a say when the Federal Reserve makes decisions on interest rates. Speaking at a press conference at his Mar-a-Lago estate in Florida, Trump said, "I think the president should at least have a say. Yes, I have a strong feeling. I think, for me, I have made a lot of money, I am very successful, and I think in many cases, my intuition is better than that of Federal Reserve members or the chairman." These remarks seem to confirm earlier reports this year that advisers close to the former president are considering a series of reforms if he is elected in November. Some of the ideas proposed include forcing the Federal Reserve to consult with the president when making interest rate decisions. Other measures include allowing the Federal Reserve to bypass White House approval in regulatory reforms and having the U.S. Treasury Department oversee Federal Reserve actions. During his presidency from 2017 to 2021, Trump fiercely criticized Jerome Powell, who was appointed as the Federal Reserve chairman in 2018. Speaking about Powell and his colleagues, Trump said, "Well, look, the Federal Reserve is a very interesting thing. It has made a lot of mistakes, and it tends to act later on certain things." Trump added that Powell's decisions were "a little too early, and a little too late. And, you know, it's largely intuition. I believe it really is intuition. I used to argue with him a lot in the past." Federal Reserve officials often emphasize the importance of central bank independence from political influence, and Powell has repeatedly stated that criticism from Trump or other officials will not affect monetary policy decisions. Trump insisted that he gets along "very well" with Powell, although some of the changes his team is considering include firing Powell or not reappointing him when his term ends in 2026. The Federal Reserve has faced criticism for waiting too long to raise interest rates when inflation began to soar in 2021, and now it is under scrutiny for not lowering rates as inflation rates steadily decline. For example, Democratic Senator Elizabeth Warren of Massachusetts has repeatedly called for the Federal Reserve to lower interest rates. To curb inflation, the Federal Reserve raised the benchmark interest rate by 525 basis points from March 2022 to July 2023. The market generally expects the Federal Reserve to start cutting rates in September. Trump usually prefers to lower rates and has often criticized the Federal Reserve for raising rates in 2018