reuters.com JD Vance backs presidential decision-making on Fed policies Aug. 11th, 2024 WASHINGTON, Aug 11 (Reuters) - Republican U.S. vice presidential candidate JD Vance on Sunday said he supports Donald Trump's call for presidents to have a say in Federal Reserve Board policy-making, including interest-rate moves, saying those should be "political" decisions. Vance's remarks during an interview with CNN's "State of the Union" program came after Trump on Thursday told reporters: "I feel the president should have at least (a) say in there." Explaining Trump's position, Vance said that the former president believes the political leadership in the United States should have more say over the country's monetary policy. While the president nominates members of the Federal Reserve Board, past administrations largely have maintained that White House meddling in the Fed's monetary decisions would inject short-term political pressures that could end up hurting the U.S. economy over the long-run. That has not stopped presidents in the past, however, from occasionally grumbling about Fed stances. "I agree with him (Trump). That should fundamentally be a political decision. Agree or disagree, we should have America's elected leaders having input about the most important decisions that confront our country," Vance said. Vance said that it would be "a huge change" to veer away from a long-held stance that the Fed should be an independent policy-making institution on monetary policy. During last week's press conference in Florida, Trump boasted: "I think that in my case, I made a lot of money, I was very successful, and I think I have a better instinct than in many cases, people that would be on the Federal Reserve or the chairman." Trump did not mention that several times over his business career his enterprises have defaulted on interest payments and filed for bankruptcy. Democratic presidential nominee Kamala Harris said on Saturday that she strongly disagreed with Trump's views on the Fed. "The Fed is an independent entity and as president I would never interfere in the decisions that the Fed makes," Harris told reporters in Phoenix, Arizona. In March 2022, the Fed began raising interest rates in an effort to tame rising inflation, as the United States was climbing out of the economic shocks of the COVID-19 pandemic. Interest rates set by the central bank can have a direct impact on borrowing costs ranging from home mortgages to credit cards. Wall Street investors have been expecting the Fed to take its first step next month to reverse that course as inflation has been cooling. As of June of this year, the inflation rate was 2.5% by the Fed's preferred measure, nearing its 2% target, after hitting 7.1% in June 2022. Other measures of inflation have been running higher but are also showing signs of easing. The Trump-Vance remarks come on the heels of a "2025 Presidential Transition Project," a controversial agenda pushed by some conservatives that recommends vast changes throughout the federal government if Trump wins the Nov. 5 presidential election against Harris. Among its recommendations were: "Appoint a commission to explore the mission of the Federal Reserve, alternatives to the Federal Reserve system, and the nation’s financial regulatory apparatus," along with other proposals for the Fed. As Democrats have ramped up their attacks on "Project 2025," Trump has distanced himself from it.
That is how central banks work in 3rd world countries and dictatorships. Both candidates are worthless inflationastas.
The moral hazard of the debtor setting his interest rate creates an incentive for maximum debt and MAXIMUM PAIN when the currency finally collapses! You can't keep stealing forever, but the changeover event is a vulture's holiday. View attachment 346314
Regarding the pic, which currency is there to replace the Dollar? And regards to your claim that the debtor is setting his own interest rate, the US can do that (for now at least) because it is practically supporting the entire global economy. Should the US buckle and drop to its knees, what do you think will happen to the rest of the world? I don't think they would want the US to go under. That is why the stock markets all over the world tanked so hard last week.
Most likely China is the next global leader with India being second. If there is going to be global trade there has to a currency to transact that is the reserve. It is probably the Yuan. The only unknown is that Asian nations historically don't like becoming debtor nations and to be the reserve currency almost always entails net debt in terms of trade. Even Japan with all its success is principally an export economy. It was WWII that pushed the GBP out & made the USD the reserve currency. Probably a global war that the US doesn't win. Or it could just be a debt default.
Now I ain't no hater of China or India like some of you, but I just don't see that ever happening. First of all, I've NEVER read or heard any third world country becoming the world economic powerhouse. That has never happened and will never happen. In fact, that is the sole reason why communism never worked in Soviet Union and China. Because they were too damn piss poor to begin with and nobody at the top knew what they were doing. Second, let's face it. Both China and India are two of the most corrupt countries in the world. On top of that, you have a dictator in China who will control every corner of socioeconomic life with an iron fist. Lastly, the economic divide between the rich and the poor is unbelievable in these countries. It's so unbelievable that it's shocking. So if one of these nations gets to control the world economy, you can say goodbye to capitalism and say hello to nepotism.
If the majority vote for President Trump, it means the majority feel POTUS should also be the Fed President/King.
Since when did the majority matter in US elections? You guys have a thing called the electoral college which is why you have a flawed democracy according to the democracy health index. https://en.m.wikipedia.org/wiki/Lis...ons_in_which_the_winner_lost_the_popular_vote https://thefulcrum.us/ethics-leadership/democracy-index
Do you realize that the per capital GDP of India is less than $2800 USD, and is less than many African countries?
Which is great because pure democracy is stupid. Crack a history book. I'm glad I live in a constitutional republic with limits on government power. It's the best system that has ever existed in the history of the world.