Trump says presidents have the right to influence Fed policy

Former President Donald Trump on Thursday said presidents should be allowed to influence the Federal Reserve in setting interest rates, in what would be a major policy shift that would threaten the Fed's historical independence from politics.

“The president should have at least a say in there,” Trump told reporters during a press conference in Palm Beach, Florida. “I feel that strongly.”

“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,” he added.

Trump’s comments, which he gave near the end of a sprawling hour-plus press conference at his Mar-a-Lago estate, mark the clearest signal yet on how he might try to blunt the central bank’s autonomy should he win a second term in November.

Speculation has swirled for months over how Trump could push for changes to Fed operations — including subjecting the central bank to review processes that apply to executive branch agencies — and how he would navigate his relationship with Fed Chair Jerome Powell.

Powell and other Fed officials have insisted that the Fed’s credibility — and the economy’s performance — hinge on its ability to operate without the direct influence of political actors.

Powell was Trump's choice for Fed chair, but he clashed repeatedly with the central banker throughout his first term. He used Twitter to repeatedly harangue Powell on rate decisions in 2018 and 2019, when the economy was buffeted by the effects of a trade war and geopolitical uncertainty .

“I used to have it out with him. I had it out with him a couple of times, very strongly. I fought him very hard,” Trump said of Powell during the press conference. “We get along fine.”

Trump criticized Powell’s timing on interest rate decisions as well, saying the chair tends to be “a little bit too early and a little bit too late.”

The Fed declined to comment.