Friday 5 April 2019

Trump's influence over the US Fed

Since Donald Trump became the US president, it is the most controversial administration in the US history and I think many of you agree with me. Not only Trump himself is very controversial, the people he pointed to key positions are also very controversial. At the moment, the potential people who Donald Trump says he is planning to nominate for the Federal Reserve's board of governors are Stephen Moore and Herman Cain. Neither man is believed by many economists and experts to be qualified to sit in the central bank of the world largest economy.
The motivation of nominating people for the US Federal Reserve is to plant his influence inside the US Federal Reserve. The independence has always been claimed to be important but is almost impossible to be ensured in the real world, since governments often have the power to nominate the key positions in central banks.
Trump is known to be unhappy about his current Fed chairman. In the short term, the current chair, Mr Powell, can handle two dissonant and eliminate the president's influence in the Fed; however, he can be replaced in the future, and by that time, Trump is possible to choose someone who is more likely to take instructions from him.

No comments:

Post a Comment