Vance backs Trump’s support for a presidential ‘say’ on Federal Reserve’s interest rate policy

WASHINGTON (AP) — JD Vance has endorsed former President Donald Trump’s call for the White House to have “a say” over the Federal Reserve’s interest rate policies — a view that runs counter to decades of economicresearch suggesting that politically independent central banks are essential to controlling inflation and maintaining confidence in the global financial system.

“President Trump is saying I think something that’s really important and actually profound, which is that the political leadership of this country should have more say over the monetary policy of this country,” the Republican vice presidential nominee said in an interview over the weekend. “I agree with him.”

Last week, during a news conference, Trump responded to a question about the Fed by saying, “I feel the president should have at least a say in there, yeah, I feel that strongly.”

Economists have long stressed that a Fed that is legally independent from elected officials is vital because politicians would almost always prefer for the central bank to keep interest rates low to juice the economy — even at the risk of igniting inflation.

<bsp-list-loadmore data-module="" class=«PageListStandardB» data-gtm-region=«RELATED COVERAGE» data-gtm-topic=«No Value» data-show-loadmore=«true» data-gtm-modulestyle=«List B»> <bsp-custom-headline custom-headline=«div»> RELATED COVERAGE </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Wall Street slips after a morning rally evaporates as some of the market’s AI darlings drop </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> The Fed’s high rates spur fear of slowdown, yet recession signals have so far proved wrong </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Fed