My transcription of JD Vance’s assertion re: the Fed, on “State of the Union”, interviewed by Dana Bash at the moment. May’ve gotten a couple of phrases improper, however bought the essence I feel.
(with apologies to the ProjectSyndicate graphic artist).
JD Vance agreed with Trump’s coverage place, characterizing it as “profound”. I outsource commentary on this coverage prescription to Maury Obstfeld at PS :
Trump’s advisers are reportedly contemplating two complementary coverage modifications. One proposal reportedly entails rising direct presidential management over the Fed’s interest-rate selections and rulemaking. Concurrently, Trump’s commerce group, led by former US Commerce Consultant Robert Lighthizer, apparently needs to weaken the greenback’s change price.
Whereas some Trump advisers have denied any plans to devalue the greenback, Trump’s desire for decrease rates of interest and a weaker forex was evident throughout his first time period. The proposed insurance policies would make it simpler for him to override the Fed’s independence and obtain each goals. The end result could be a potent inflationary cocktail.
Trump’s need for a weaker greenback is pushed by his perception, shared by Lighthizer, that the greenback is “too strong.”
See additionally right here, for central financial institution independence in a Trump-Vance administration.
