Trump wants to appoint someone to the Fed who will work for him – report

The WSJ publishes a new report from Nick Timiraos and two other journalists. It says Trump’s “allies are quietly developing proposals that would attempt to erode the independence of the Federal Reserve” if he wins the November election.

Former Trump administration officials and other supporters of the presumptive Republican Party nominee have discussed a series of proposals in recent months, ranging from incremental policy changes to a long-term assertion that the president himself should play a role in setting interest rates. A small group of the president’s allies — whose work is so secret that even some former Trump economic advisers were unaware of it — produced a roughly 10-page document outlining a policy vision for the central bank, according to sources close to the matter. the question.

The Federal Reserve’s mechanisms would make it extremely difficult for Trump to take the White House.

1. Jerome H. Powell (president) – His second term as President began in 2022 and is expected to last until January 31, 2026.
2. Philip N. Jefferson (vice president) – His term of office as director expires on January 31, 2036.
3. Michael S. Barr (Vice President for Oversight) – His term as director will end on January 31, 2032
4. Michelle W. Bowman – His mandate will end on January 31, 2034
5. Lisa D. Cook – His mandate will end on January 31, 2032
6. Christopher J. Waller – His mandate will end on January 31, 2030
7. Adriana Kugler – His mandate will end on January 31, 2026

Any replacement must be confirmed by the Senate.

Regional directors with rotating votes are also appointed by their regional board of directors.

It remains an open question whether Trump might try to oust Powell, but even if he did, Powell would have the option of remaining on the board of governors.

Traditionally, the president has a say in policy direction, but if it were led by the president, I strongly suspect that other votes would ignore it or strongly oppose it.

Overall, I think it’s nothing for the Fed, but it’s a clear indication of how a second Trump presidency would go in many other departments.