US presidential election|Trump thinks he would be a good person to advise the central bank because he has gotten rich.
Presidential candidate Donald Trump wants the president of the United States to have more influence over the country’s central bank.
Trump hinted about it at his press conference on Thursday.
“I think the president should at least have a say there,” Trump told reporters at his Florida mansion. He relied on the fact that before his political career he was successful in business.
“I made a lot of money, I was very successful, and I think I have a better instinct than in many cases people who would be in or at the head of a central bank.”
of the United States the central bank wields significant power, and its policies have ripple effects around the world.
The bank has been under scrutiny for the past few days because the employment figures in the US have fallen short of expectations and a reaction is expected from the bank. The bank held its key interest rate in July still unchangedbut changes may come in the fall.
The president of the United States appoints the members of the bank’s management, and the selections are approved by the Senate. Despite this, the bank enjoys considerable independence.
Next the president, i.e. Trump or a counter-candidate Terrible Harriswill be able to appoint the bank’s next CEO within a couple of years. Trump commented financial media for Bloomberg in Julythat he would give the current manager Jerome Powell to be washed until the end of the season, i.e. until the spring of 2026.
There would hardly be a continuation, because the relationship between the men has become tense. Trump said Thursday that he “fought really hard” with Powell over rate hikes in his first term.
Practical power Trump would gain by appointing a person loyal to him, says news agency Reuters.
According to the news agency, the situation worries economists because in the 1970s the president Richard Nixon the president of your company at the time, but inflation was not brought under control with those teachings.
Read HS’s extensive article on the independence of central banks: The independence of central banks is being undermined again – and it could have disastrous effects, economists warn
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