My transcription of JD Vance’s assertion re: the Fed, on “State of the Union”, interviewed by Dana Bash as we speak. May’ve gotten a number of phrases flawed, however acquired 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 adjustments. One proposal reportedly entails growing direct presidential management over the Fed’s interest-rate selections and rulemaking. Concurrently, Trump’s commerce workforce, led by former US Commerce Consultant Robert Lighthizer, apparently desires to weaken the greenback’s alternate fee.
Whereas some Trump advisers have denied any plans to devalue the greenback, Trump’s desire for decrease rates of interest and a weaker foreign money 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 targets. 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.
