Trump: Leaning toward Warsh or Hassett to lead the Fed: WSJ

Why not go for 0% rate or negative rates like the SNB/JPY?

You understand you can't scream we have the greatest economy, no inflation, and want lower rates with that.

I think whoever gets picked understands they about to get skewered just like Powell when they're unable to get the rates to the level that Trump wants.

No, the Federal Reserve is neither required nor expected to consult with the president on interest rate decisions.

**In more detail:**

1. **Institutional independence**
By law, the Federal Reserve is an independent central bank. Its mandate, established by the U.S. Congress, is **price stability** and **maximum employment**. Independence from the executive branch is considered a key condition for credibility in monetary policy.

2. **No legal requirement**
The President of the United States, including Donald Trump during his term, **has no formal authority** to participate in interest rate decisions and **is not a party with whom the Fed must consult**. Decisions are made by the Federal Open Market Committee (FOMC).

3. **Political statements vs. institutional practice**
Presidents often publicly express opinions about interest rates or economic policy—Trump did so particularly actively. However, this is **political rhetoric**, not part of the Fed’s decision-making process.

4. **Why consultations are considered undesirable**
Direct consultations with the president on interest rates could:

* undermine market confidence in the Fed’s independence,
* increase inflation expectations,
* create a risk that monetary policy is used for short-term political objectives.

5. **What is acceptable in practice**
**General contacts** involving the exchange of macroeconomic information are possible (as with Congress, the Treasury, and international institutions), but **not coordination of decisions** or consideration of political preferences.

**Conclusion:**
The Fed may take into account overall economic conditions and government fiscal policy, but it **should not and is not institutionally required to consult with the president on interest rates**. This is a fundamental element of the U.S. economic model.

how he will support crypto by not make the normal fiat currency more weak? that is so crazy that a president is allowed to make currency weak and have same time crypto big invested..... its like extrem connected and influenced decisions. you destroy what is better than any crypto to create a fake usecase for crypto.

I think that one option for the situation where a maniac is democratically elected to high office and cannot be legitimately removed is to grant his every wish.

Release the Kraken.

1% interest rate. OK. Then also the money printing press comes to a HALT !!!!

I dont think Mr Trump fully appreciates the concept and importance of FED independence on the US, and still World, financial system. Independence is fundamental to achieving and maintaining confidence in the US financial system.

Trump: Leaning toward Warsh or Hassett to lead the Fed: WSJ

somebody should tell him .. thas 2 voices is not enough to 10 others :-)

nerd, you feel better now?

Buy physical Gold.

If ifs and buts were candy and nuts everyone would have a wonderful Christmas.

If we could have 1% without inflation that would be wonderful too, but…