US election risk – Trump wants a say in Federal Reserve decisions

Clearer lines are emerging between the two major parties in the US presidential election.

Republican candidate Trump spoke about cnbc:

  • “I feel that the president should at least have a say in this,” Trump said at a news conference at his Mar-a-Lago residence in Florida. “Yes, I feel that very strongly. I think in my case, I’ve made a lot of money, I’ve been very successful, and I think I have a better instinct than, in many cases, people who would be at the Fed or the chairman of the board.”

Trump’s view does not appear to extend to a vote on the FOMC, all he has said is that he wants to “have his say.” It would be naive to suggest that the president’s word on monetary policy decisions will not carry much weight.

Politicians having a say in central bank decisions is not unusual in some parts of the world. China is the most prominent example, where the Politburo tightly controls the People’s Bank of China. Turkey has also tried to do so.

On the sidelines, feel free to leave your comments. As the election approaches, I realize that people will be upset and angry. But your comments should be fact-based and free of personal attacks.

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