"End the Federal Reserve"? Musk supports!

In response to Utah Senator Mike Lee's post on social media last Thursday calling for the Federal Reserve to accept presidential leadership, billionaire supporter of Trump and CEO of Tesla and SpaceX, Elon Musk, posted a "100" emoji last Friday to indicate his agreement. The senator's post stated, "The executive branch should be under the leadership of the president. That is the design of the Constitution." He also included the hashtag "#EndtheFed" in his post. He wrote, "The Federal Reserve is one of many examples where we have strayed from the Constitution. This is another reason we should #EndtheFed." Musk retweeted this post on his social media platform X, indicating Musk's support for allowing presidential intervention in Federal Reserve policy. Although Musk's comment was brief, it reflects a broader pressure campaign on the issue of Federal Reserve independence, which may take shape in a future Trump administration. This could set the stage for Trump's first major showdown over his comprehensive economic plan. Last Thursday, Federal Reserve Chairman Jerome Powell stated that he would not resign if Trump asked him to. Powell also noted that Trump's election would not impact the central bank's decision-making "in the short term." This marks a potential return to a contentious relationship between the Federal Reserve chairman and the elected president. The tradition of Federal Reserve independence is designed to enable it to make monetary policy decisions solely based on the health of the U.S. economy, such as raising or lowering interest rates. However, during his first term, Trump unabashedly broke with tradition, publicly disparaging Powell and his policy decisions. During the 2024 presidential campaign, Trump frequently joked that if he returned to the White House, he would have a say in Federal Reserve policy. Trump said in August this year, "I think the president should at least have a say in it. I think, for me, I've made a lot of money, I've been very successful. I think in many cases, my instincts are better than those of the people at the Federal Reserve." Although the Federal Reserve is expected to cut rates again in December, some analysts suggest that if there are more signs that inflation persists or the economy continues to grow strongly, policymakers may pause further rate cuts. Meanwhile, Trump hopes Musk will lead efforts to improve government efficiency, with the billionaire CEO stating that $2 trillion could be cut from federal spending. Last Saturday, Musk said on X, "Currently, the unelected and unconstitutional federal bureaucracy has more power than the president, the legislature, or the judiciary! This needs to change."