White House Council of Economic Advisers Chairman Jared Bernstein is emphasizing the “importance of central bank independence,” while former President Trump calls for more influence over the Federal Reserve.
Bernstein shared a May White House analysis of the value of the dependent Fed, saying: “History could not be clearer regarding the lasting and damaging inflationary consequences of ignoring this lesson or reversing the hard-won progress of the last half century.” .
During a press conference on Thursday, Trump said he “strongly” believes the “president should have at least [a] say” at the Federal Reserve.
Comparatively, the White House he said The Biden-Harris administration believes in “the importance of an independent central bank,” calling it a “critical component” of the ability to control inflation.
In April, the Wall Street Journal reported that Trump’s allies have drafted proposals that would attempt to win the Fed’s independence if he wins in November.
Trump argued that he believes he has better instincts than others because he has been “very successful” and “made a lot of money.”
Whoever wins the election, Trump or Vice President Harris, will have the ability to choose the next Fed chairman.
Although the president and members of the board of governors are appointed by the president and confirmed by the Senate, they are independent and capable of making policy decisions.
Reuters reports that Some economists fear that if Trump is re-elected, he could take steps similar to those of former President Nixon, who in 1972 pressured the Fed chairman to maintain an expansionary monetary policy despite inflation pressures.
The White House noted Nixon’s pressure in its report.
“A non-independent central bank may face political pressure to quickly accelerate the economy for political reasons, as when President Nixon pressured then-Fed Chairman Arthur Bruns to engineer a favorable economy in time for the 1972 presidential election,” it states. the report. “But monetary policy takes longer to have the intended impact.”
This story originally appeared on thehill.com read the full story
