Trump Allies Propose Plans to Give Former President Influence Over Federal Reserve: Implications and Concerns

Washington D.C., District of Columbia United States of America
Candidates for Fed chair may be required to privately agree to consult with Trump on decisions.
Experts warn that Trump attempting to exert more control over the Fed could harm the US and its role as a financial center.
Former President Trump appointed Jerome Powell as Fed Chair in 2017 but criticized him throughout his term.
Plans include ousting Jerome Powell as Fed chairman and having a direct hand in setting interest rates and other Fed policy.
Trump allies proposing plans to give Trump more influence over Federal Reserve should he be re-elected.
Trump campaign planning to weaken or end Federal Reserve's autonomy.
Trump wants someone in charge of the institution who will treat him as an ex officio member of the central bank's rate-setting committee.
Trump Allies Propose Plans to Give Former President Influence Over Federal Reserve: Implications and Concerns

In recent developments, there have been reports of former President Donald Trump's allies proposing plans to give him more influence over the Federal Reserve should he be re-elected. According to various sources, these plans include ousting current Fed Chair Jerome Powell and requiring that Fed policy align with the administration's goals (WSJ, 2024). This potential move has raised concerns among experts and investors due to the potential harm it could cause to the US financial system and its role as a global financial center. It is important to note that the Federal Reserve is an independent agency run by a board of governors appointed by the president and confirmed by the Senate, and presidents have no legal power over FOMC decisions (The Hill, 2024). However, attempts to influence Fed decisions could negatively impact US financial markets. Here's a closer look at some of the facts surrounding this issue:

  1. Trump allies are crafting ways to give Trump more influence over the Federal Reserve should he be re-elected (The Hill, 2024).
  2. Former President Trump appointed Jerome Powell as Fed Chair in 2017 but berated him throughout his term (The Hill, 2024).
  3. Experts warn that Trump attempting to exert more control over the Fed could harm the US and its role as a financial center (WSJ, 2024).
  4. The Trump campaign has distanced itself from the plan to give Trump more power over Fed decisions and regulations (The Hill, 2024).
  5. The Federal Reserve is an independent agency run by a board of governors appointed by the president and confirmed by the Senate (The Hill, 2024).
  6. President Trump has no legal power over FOMC decisions, but attempts to influence could harm US financial markets (The Hill, 2024).
  7. Trump's campaign is planning to weaken or end the Federal Reserve's autonomy (Nymag, 2024).
  8. Plans include ousting Jerome Powell as Fed chairman and having a direct hand in setting interest rates and other Fed policy (Nymag, 2024).
  9. Trump wants someone in charge of the institution who will treat him as an ex officio member of the central bank's rate-setting committee (WSJ, 2024).
  10. Candidates for Fed chair may be required to privately agree to consult with Trump on decisions (Nymag, 2024). It is crucial that any changes to the Federal Reserve's structure and decision-making process are made in a transparent and non-partisan manner, ensuring the independence of the central bank and maintaining confidence in the US financial system.

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Confidence

91%

Doubts
  • It is unclear whether Trump has officially endorsed these plans.
  • The extent to which Trump would be able to exert influence over Fed decisions if elected is uncertain.

Sources

79%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trump’s potential plan for Fed raises alarms

The Hill News Site: https://thehill.com/homenews/senate-seethe-republicans-call-for-israeli-elections/ Sylvan Lane Friday, 26 April 2024 21:44
  • Unique Points
    • Trump allies are crafting ways to give Trump more influence over the Federal Reserve should he be reelected
    • Former President Trump appointed Jerome Powell as Fed Chair in 2017 but berated him throughout his term
    • Experts warn that Trump attempting to exert more control over the Fed could harm the US and its role as financial center
    • Trump campaign has distanced itself from plan to give Trump more power over Fed decisions and regulations
    • Fed is an independent agency run by a board of governors appointed by the president and confirmed by the Senate
    • President has no legal power over FOMC decisions, but attempts to influence could harm US financial markets
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (30%)
    The article contains selective reporting as it only reports details that support the author's position about Trump's potential plan to exert more influence over the Federal Reserve. The author also uses emotional manipulation by implying that Trump's actions would harm the US and its role as the center of the financial world. Additionally, there is a lie by omission as the article fails to mention that Powell was renominated by President Biden and can serve as Fed chair through 2026.
    • If it becomes clear that there’s going to be a Fed chair that answers to the president, I would expect a dramatic reaction in the markets and the White House would have to deal with that.
    • The campaign has distanced itself from the plan, but experts say Trump’s attempts could seriously harm the U.S. and its role as the center of the financial world.
  • Fallacies (90%)
    The article contains an appeal to authority fallacy when it states 'experts say Trump’s attempts could seriously harm the U.S. and its role as the center of the financial world.' This is an appeal to authority because it assumes that the experts' opinions are true without providing any evidence or reasoning to support their claims.
    • experts say Trump’s attempts could seriously harm the U.S. and its role as the center of the financial world.
  • Bias (80%)
    The author expresses a clear bias against Trump's potential plan to exert more influence over the Federal Reserve. The author uses language that depicts Trump's actions as alarming and harmful to the US and its role as the center of the financial world.
    • But the Trump campaign plan obtained by The Wall Street Journal would shatter decades of institutional protections built to insulate the Fed from the political whims of the president.
      • Former President Trump’s potential plan to exert more influence over the Federal Reserve is alarming experts and investors.
        • If it becomes clear that there’s going to be a Fed chair that answers to the president, I would expect a dramatic reaction in the markets and the White House would have to deal with that.
          • They also argue Trump would have the power to oust Fed Chair Jerome Powell, whom he appointed to the job in 2017 and then berated through most of his term, despite legal protections from being fired without cause.
          • Site Conflicts Of Interest (100%)
            None Found At Time Of Publication
          • Author Conflicts Of Interest (100%)
            None Found At Time Of Publication

          91%

          The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
          (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

          A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

          Trump advisors are considering plans to dramatically revamp the Fed, WSJ report says

          CNBC News Jeff Cox Friday, 26 April 2024 10:53
          • Unique Points
            • Former President Donald Trump's political operatives are putting together a plan that would give him unprecedented influence over the Federal Reserve
            • The plan suggests Trump, if elected, would be consulted on interest rate decisions
            • Trump could remove current Fed Chair Jerome Powell from office and require that Fed policy be aligned with the administration’s goals
          • Accuracy
            • Trump wants someone in charge of the Fed to treat him as an ex officio member of the rate-setting committee
            • President may have direct hand in setting interest rates and other Fed policy
          • Deception (100%)
            None Found At Time Of Publication
          • Fallacies (85%)
            The article contains an appeal to authority fallacy by stating that Trump's political operatives are putting together a plan to give him unprecedented influence over the Federal Reserve according to a report from The Wall Street Journal. Additionally, there is an example of inflammatory rhetoric in the phrase 'unprecedented influence over the Federal Reserve.'
            • Former President Donald Trump's political operatives are putting together a plan that would give him unprecedented influence over the Federal Reserve, including a provision that could make him an "acting" central bank board member, according to a report from The Wall Street Journal.
            • That plan, which the Journal report described as highly secretive, is part of a 10-page document that suggests Trump — if elected — would be consulted on interest rate decisions.
          • Bias (100%)
            None Found At Time Of Publication
          • Site Conflicts Of Interest (100%)
            None Found At Time Of Publication
          • Author Conflicts Of Interest (100%)
            None Found At Time Of Publication

          94%

          The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
          (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

          A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

          The Centralization of Power

          The Library of Economics and Liberty (Econlib) Scott Sumner Friday, 26 April 2024 23:06
          • Unique Points
            • A small group of former Trump's allies have produced a policy vision document for the central bank
            • Donald Trump’s economic advisers are reportedly discussing ways to devalue the US dollar if he is re-elected
            • Robert Lighthizer, a former Trump administration trade war spearhead, is among those proposing this idea
          • Accuracy
            • Trump wants someone in charge of the Fed to treat him as an ex officio member of the rate-setting committee
            • Candidates for Fed chair may be required to consult with Trump on decisions
          • Deception (100%)
            None Found At Time Of Publication
          • Fallacies (100%)
            None Found At Time Of Publication
          • Bias (100%)
            None Found At Time Of Publication
          • Site Conflicts Of Interest (50%)
            Scott Sumner, the author of this article published on the Econlib website, has conflicts of interest regarding the topics Viktor Orban and central bank policy vision due to his past affiliations with Robert Lighthizer and former President Trump. Lighthizer is a key adviser to Trump and has discussed ways to devalue the U.S. dollar with him.
            • chief among these advisers is Robert Lighthizer.
              • Former president’s advisers discuss ways to devalue the U.S. dollar.
              • Author Conflicts Of Interest (100%)
                None Found At Time Of Publication

              69%

              The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
              (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

              A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

              Trump Second-Term Plan Includes Federal Reserve Coup

              New York Magazine Jonathan Chait Friday, 26 April 2024 14:28
              • Unique Points
                • Trump's campaign is planning to weaken or end the Federal Reserve’s autonomy
                • Plans include ousting Jerome Powell as Fed chairman
                • President may have direct hand in setting interest rates and other Fed policy
                • Trump wants someone in charge of the institution who will treat him as an ex officio member of the central bank’s rate-setting committee
                • Candidates for Fed chair may be required to privately agree to consult with Trump on decisions
              • Accuracy
                • ]Trump's campaign is planning to weaken or end the Federal Reserve’s autonomy[
              • Deception (30%)
                The article by Jonathan Chait contains several instances of deception through selective reporting and editorializing. The author implies that Trump's plan to weaken or end the Federal Reserve's autonomy is a new development when in fact Trump had previously expressed his dissatisfaction with Jerome Powell during his first term. The author also fails to mention that the Federal Reserve's autonomy was a bipartisan issue, with both Democrats and Republicans supporting it for decades. By focusing solely on Trump's actions and implying that this is a recent development, the author is misleading readers about the context of Trump's plans.
                • Despite having chosen Powell for the position, Trump turned against him, as he did many of his appointees, because Powell did not treat Trump’s immediate political needs with sufficient attention. Trump repeatedly demanded interest-rate cuts that Powell did not supply.
                • The trouble with this hope is not only that a repeat performance is not assured, but that Trump is deliberately setting out to not repeat it.
                • The most potent source of support for Donald Trump’s campaign, by far, is nostalgia for his first term.
                • Trump may have relentlessly rattled the cage of democratic norms, but the restraints largely held. The economy coasted as the recovery from the Great Recession reached its apex of low unemployment and low inflation.
              • Fallacies (100%)
                None Found At Time Of Publication
              • Bias (90%)
                The author expresses a clear bias against Donald Trump and his potential second term plans. He uses language that depicts Trump as chaotic, unstable, and prioritizing short-term political gains over long-term economic consequences. The author also implies that Trump's actions would lead to inflation and undermine the Federal Reserve's autonomy.
                • The most potent source of support for Donald Trump’s campaign, by far, is nostalgia for his first term. But what Trump wants is considerably more ambitious and threatens something far more chaotic than the public envisions.
                  • The trouble with this hope is not only that a repeat performance is not assured, but that Trump is deliberately setting out to not repeat it.
                    • Trump continues to elevate January 6 as a campaign theme – he is forcing the party to supply total loyalty to even his wildest lies and most authoritarian ambitions.
                      • Trump may have relentlessly rattled the cage of democratic norms, but the restraints largely held. The economy coasted as the recovery from the Great Recession reached its apex of low unemployment and low inflation. The inflation surge of 2021–22 soured the voters on Joe Biden’s presidency, and – having decided Trump is not to blame for the chaos of 2020 – they want 2019 back.
                      • Site Conflicts Of Interest (0%)
                        None Found At Time Of Publication
                      • Author Conflicts Of Interest (100%)
                        None Found At Time Of Publication