Trump Seeks A Voice On Fed Policies
What's your opinion
As the nation's elected leader and chief executive, Donald Trump has a solid case that any president should have input into the Federal Reserve's critical decisions on interest rates and economic policies that impact all Americans.
While the Fed's political independence is important, the president is ultimately responsible for the country's economic performance and financial well-being. Having no say on monetary policy seems an overreach of independence.
Trump's Comments Reasonable
"I feel the president should have at least (a) say in there"
"I think I have a better instinct" than Fed officials on economic matters
Comments suggest a president's guidance could benefit the Fed's decision-making
Sponsor
CNBC's ‘Prophet’ issues important Fed warning [Full Story >>]
Holding Fed Accountable
Trump advisors propose forcing Fed to consult president on rates
And requiring Fed to run major regulatory changes past White House
Reasonable checks to increase accountability of unelected officials
Bigger Role for Elected Leadership
Fed chairs like Powell are unelected and their terms extend past presidents'
But they wield immense power over economy that elected leaders are judged on
More input from White House could better align policies with voters' preferences
Balanced Approach Needed
Few dispute Fed needs sphere of independence from short-term politics
But it shouldn't operate in a vacuum without any accountability
Balance is needed between autonomy and input from elected leadership
Ultimately, having the president's voice involved in Fed policies that shape the nation's economic trajectory is democracy in action. The centrality of the Fed's powers warrants input from the office that represents and is accountable to all Americans.
While we believe in the importance of Fed independence, the president's input should be given weight - though the Fed would still have the ultimate decision authority.
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