To ensure tyranny of minority rule?
Should the POTUS interfere with FOMC's decision?
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Potatoes, bananas...
https://www.merriam-webster.com/grammar/democracy-and-republic
But I agree, it is a banana republic (under the Republicans)...
So the minority should rule?
reuters.com
JD Vance backs presidential decision-making on Fed policies
Aug. 11th, 2024
WASHINGTON, Aug 11 (Reuters) - Republican U.S. vice presidential candidate JD Vance on Sunday said he supports Donald Trump's call for presidents to have a say in Federal Reserve Board policy-making, including interest-rate moves, saying those should be "political" decisions.
Vance's remarks during an interview with CNN's "State of the Union" program came after Trump on Thursday told reporters: "I feel the president should have at least (a) say in there."
Explaining Trump's position, Vance said that the former president believes the political leadership in the United States should have more say over the country's monetary policy.
While the president nominates members of the Federal Reserve Board, past administrations largely have maintained that White House meddling in the Fed's monetary decisions would inject short-term political pressures that could end up hurting the U.S. economy over the long-run.
That has not stopped presidents in the past, however, from occasionally grumbling about Fed stances.
"I agree with him (Trump). That should fundamentally be a political decision. Agree or disagree, we should have America's elected leaders having input about the most important decisions that confront our country," Vance said.
Vance said that it would be "a huge change" to veer away from a long-held stance that the Fed should be an independent policy-making institution on monetary policy.
During last week's press conference in Florida, Trump boasted: "I think that in my case, I made a lot of money, I was very successful, and I think I have a better instinct than in many cases, people that would be on the Federal Reserve or the chairman."
Trump did not mention that several times over his business career his enterprises have defaulted on interest payments and filed for bankruptcy.
Democratic presidential nominee Kamala Harris said on Saturday that she strongly disagreed with Trump's views on the Fed.
"The Fed is an independent entity and as president I would never interfere in the decisions that the Fed makes," Harris told reporters in Phoenix, Arizona.
In March 2022, the Fed began raising interest rates in an effort to tame rising inflation, as the United States was climbing out of the economic shocks of the COVID-19 pandemic.
Interest rates set by the central bank can have a direct impact on borrowing costs ranging from home mortgages to credit cards.
Wall Street investors have been expecting the Fed to take its first step next month to reverse that course as inflation has been cooling.
As of June of this year, the inflation rate was 2.5% by the Fed's preferred measure, nearing its 2% target, after hitting 7.1% in June 2022. Other measures of inflation have been running higher but are also showing signs of easing.
The Trump-Vance remarks come on the heels of a "2025 Presidential Transition Project," a controversial agenda pushed by some conservatives that recommends vast changes throughout the federal government if Trump wins the Nov. 5 presidential election against Harris.
Among its recommendations were: "Appoint a commission to explore the mission of the Federal Reserve, alternatives to the Federal Reserve system, and the nation’s financial regulatory apparatus," along with other proposals for the Fed.
As Democrats have ramped up their attacks on "Project 2025," Trump has distanced himself from it.
OMG!!! That's it. Trump is not getting elected. Feds needs to be impartial and independent for it to make decisions about how to manage the country's economy. Monetary policy should be about MONEY and how it can shape the economy. It shouldn't have any politics involved!! A political leader's job is to lead the country and not mess with money. The Fed chairman already serves at the pleasure of the President. If he doesn't like him, replace him. WHY does he still have to have a say in the monetary policy setting? Let the people who know how to do their job handle the job. You just lead!!
Oh god! I had so high of hopes of him getting elected, against all those odds. But this puts doubt in my mind.
That's because India's just got way too many people that it should've done something about long time ago. But India's economic growth has been phenomenal though. If you ship all those extra people from India, you will see the GDP per capital would be much higher.
Lol loonie.
We have Provinces and we manage. The problem is the polarization because you only have 2 competing parties...its a shell game. We have 5 parties that have won federal elections.
Wow, you are just raging again. Clearly wxytrader is talking about political dominance when he says: "We have 5 parities that have won federal elections."
Yes you are correct, there are "more than 2 parties" in terms of registered parties. But not in terms of political dominance. You clearly knew what wxytrader was driving at, but you just wanted to rage post. Meh.
In your fit of rage, you just skimmed my post. Read it again. I said that the 1% chance of the central bank not bailing out Wall Street only occurs if the Libertarian party is POTUS.
Oh c'mon, I was just being cute.
BTW did you even read about how Trudeau and his loonies have been governing up north? Yeah, how cute.It is the US that has too many people. In India you work or you starve. In the US you have millions of useless people employed by the government and being paid with bloated paid salaries and pensions and people receiving welfare benefits exceeding what they could get from working.
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What? Like this is anything new? Is that why he acted like he knew more about Corona virus than Fauci and gave daily briefings himself?
If you are being honest, the track record of "those who know how to do their job" is abysmal. Greenspan later admitted he messed up by cutting rates which caused the 2000 bubble.
This is the same central bank that said inflation was "transitory" several years ago.
Maybe POTUS ordering the central bank around is not the solution either, but neither is the status quo.