Sen. JD Vance expressed his agreement with former President Donald Trump’s belief that elected officials should play a larger role in determining monetary policy.
Republican vice presidential candidate Sen. JD Vance (R-Ohio) reiterated Trump’s stance on federal monetary policy during an appearance on CNN’s “State of the Union” on Aug. 11.
In response to host Dana Bash’s question about Trump’s comments, Vance stated that he “absolutely” supports the former president’s perspective. He emphasized the importance of allowing elected officials to have a say in the decisions made by the Federal Reserve.
Vance highlighted the significance of political leadership having input on monetary policy, stating, “Agree or disagree, we should have America’s elected leaders having input about the most important decisions confronting our country.”
Currently, the president does not have direct authority over the Federal Reserve’s decisions, which are primarily determined by the central bank’s chairman and board. However, the president appoints and the Senate confirms the chairman, vice chairs, and board members.
During his presidency, Trump criticized the Federal Reserve’s decisions to raise interest rates, which he believed had negative implications for Americans seeking credit. Despite his objections, the Fed, led by Trump appointee Jerome Powell, continued to increase rates until the end of 2018.
As of August 2024, Federal Reserve interest rates stand at 5.33 percent, following multiple rate hikes since 2021 aimed at combating inflation.
Vance acknowledged that granting the president influence over Fed policy would represent a significant change, but he viewed it as a more democratic approach to monetary policy in the United States. He emphasized the importance of democratic debate on key issues such as interest rates.
Trump’s remarks on the Fed, made two days before Vance’s interview, included criticism of the central bank’s past decisions. He expressed confidence in his own instincts regarding monetary policy.
A shift in Fed policy to give the president more direct control over monetary decisions would require new legislation, potentially facing challenges in the Senate if met with opposition from Democrats.
Established in 1913, the Federal Reserve operates in a quasi-public and private capacity, making decisions related to the U.S. dollar independently of the U.S. government.
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“The cat lazily lounged in the sun, soaking up its warmth.”
The cat relaxed in the sun, basking in its warmth.
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