Trump advisers are considering plans to dramatically overhaul the Fed, the WSJ report said

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Former US President Donald Trump speaks with members of the media at Manhattan Criminal Court on Thursday, April 25, 2024, in New York, US.

Jeenah Moon | Via Reuters

Former President Donald Trump’s political operatives are drawing up a plan that would give him unprecedented influence over the Federal Reserve, including a provision that could make him an “acting” board member of the central bank, according to a report. report from The Wall Street Journal.

That plan, described as highly secretive in the Journal report, is part of a 10-page document that suggests Trump — if elected — would be consulted on interest rate decisions. In addition, the Treasury Department would be used as an additional control mechanism to oversee the Fed’s purchasing activities.

Along with these proposals, the draft states that Trump could remove current Fed Chairman Jerome Powell from office and demand that Fed policy be aligned with the administration’s goals. While in power, Trump sharply criticized Powell and his fellow central bankers for raising interest rates and reportedly considering ousting him.

Trump campaign officials told the Journal that the draft proposals should not be considered “official.”

It is unclear what authority the president would have to take such bold steps against a Fed that has traditionally tried to insulate its activities from outside political pressure.

A Fed spokesperson declined to comment on the report.

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