It's against the will of heaven!! Trump: The president should have a say in monetary policy

On Thursday (August 8), former US President and Republican presidential candidate Trump said that the US President should have a certain say in central bank interest rates and monetary policy

"As far as I'm concerned, I've made a lot of money and I've been very successful," Trump said at a press conference at the Mar-a-Lago Club. "I think that in many cases, my intuition is better than that of Fed officials or the Fed chairman."

In his speech, he also criticized the current Fed Chairman Powell for adjusting interest rates "sometimes too early and sometimes too late," suggesting that the timing of his decision-making actions was not accurate enough

Earlier this month, Trump also said at another meeting that high inflation and high interest rates are "destroying our country" and that if elected, he would "sharply lower interest rates"

Although Powell's position was nominated by Trump during his first term, the relationship between the two was very tense afterwards. In April this year, there were reports that Trump's allies were drafting proposals to try to weaken the independence of the Fed after Trump's victory.

Obviously, these remarks and potential actions will inevitably cause concerns from the outside world, that is, if Trump returns to the White House later this year, can the Fed still maintain its long-promised "independence"?

It is generally believed that the independence of the Fed will help maintain economic stability and avoid economic risks caused by political interference. If the Fed is subject to political pressure, it may lead to short-sighted monetary policy and sometimes fail to take timely action, thereby exacerbating the volatility of the economy and financial markets.

In this regard, Powell has repeatedly emphasized that he promised not to let political pressure affect the Fed's decision-making.

But Trump's statement also makes sense.

For example, the current round of high inflation and high interest rates in the United States is because the Fed misjudged the situation in 2022 and believed that inflation would not continue, causing the current central bank to have to maintain high interest rates for a longer period of time.

At the end of last month, the Fed "stood still" under huge pressure from the outside world to cut interest rates. After the unemployment rate triggered the "Sam Rule", Wall Street investment banks, economists, and members of Congress accused the bank of missing the best time to cut interest rates.#美联储何时降息？ $ETH $BTC