My transcription of JD Vance’s statement re: the Fed, “State of the Union”, discussed by Dana Bash today. Maybe a few words are wrong, but I have the essence in mind.
(with apologies to the ProjectSyndicate illustrator).
JD Vance agreed with Trump’s policy position, describing it as “profound”. I quote this policy drug comment from Maury Obstfeld at PS :
Trump’s advisers are reportedly considering two parallel policy changes. One suggestion it is reported that involves increasing the president’s direct control over the Fed’s interest rate decisions and rulemaking. At the same time, Trump’s trade team, led by former US Trade Representative Robert Lighthizer, apparently wants to do so. weaken the dollar exchange rate.
While some of Trump’s advisers have denied plans to devalue the dollar, Trump’s penchant for low interest rates and a weak currency was evident during his first term. The proposed policies would make it easier for him to override the Fed’s independence and accomplish both goals. The result will be a potent inflationary cocktail.
Trump’s desire for a weaker dollar is driven by his belief, shared by Lighthizer, that the dollar is “too strong.”
See also here, for central bank independence in the Trump-Vance administration.
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