Intriguing Predictions On Trump’s Plan For Federal Reserve
Via Birch Gold Group,
ZeroHedge.com
Dec 2, 2016
Donald Trump is preparing for his entrance to the White House, and a big part of that process involves selecting individuals to fill top-level appointments in his administration. Trump’s picks so far are already garnering a lot of attention, but his choices for appointments relating to the economy could cause the biggest stir of all.
As Trump and his new appointments rise to power, the Federal Reserve could be targeted for overdue changes and reforms. Let’s take a look at how the Trump administration may change the Fed.
Stripping the Fed’s Independence
With the exception of a couple isolated periods in U.S. history, the Federal Reserve has operated as an independent entity, with practically zero accountability to any branch of the U.S. Government. As a result, the Fed maintains the ability to manage and manipulate the economy without the fear of political repercussions or punishment from government officials.
If you’re wondering whether or not that kind of autonomy is a good thing, just take a look at the treacherous boom-and-bust cycle our economy is currently stuck in.
But there’s one loophole that could rain on the Fed’s party. According to Narayana Kocherlakota, there’s no law on the books that protects the Fed’s independence; the broad freedom assumed by the Fed over the past several decades relies solely on the president’s discretion.
It’s no secret that Trump has a bone to pick with the Fed, so he could be the first president in years to strip away its independence.
Plus, it speaks volumes that just days before the election, Fed chair Janet Yellen started to publicly argue the importance of an independent Fed.
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