Vance backs Trump's support for a presidential 'say' on Federal Reserve's interest rate policy
JD Vance has endorsed former President Donald Trump’s call for the White House to have “a say” over the Federal Reserve’s interest rate policies — a view that runs counter to decades of economic research suggesting that politically independent central ...
WASHINGTON — JD Vance has endorsed former President Donald Trump's call for the White House to have “a say” over the Federal Reserve's interest rate policies — a view that runs counter to decades of economicresearch suggesting that politically independent central banks are essential to controlling inflation and maintaining confidence in the global financial system.
“President Trump is saying I think something that’s really important and actually profound, which is that the political leadership of this country should have more say over the monetary policy of this country,” the Republican vice presidential nominee said in an interview over the weekend. “I agree with him."
Last week, during a news conference, Trump responded to a question about the Fed by saying, “I feel the president should have at least a say in there, yeah, I feel that strongly.”
Economists have long stressed that a Fed that is legally independent from elected officials is vital because politicians would almost always prefer for the central bank to keep interest rates low to juice the economy — even at the risk of igniting inflation.
“The independence of the Fed is something that not just economists, or investors, but citizens should place a high value on,” said Carl Tannenbaum, chief economist at Northern Trust, a wealth management firm.
Tannenbaum pointed to the recent experience of Turkey, where the autocratic President Recep Tayyip Erdogan forced the nation’s central bank to cut rates in response
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