finance.yahoo.com Open in urlscan Pro
2001:4998:60:807::1  Public Scan

Submitted URL: https://clients.evodince.com/t/y-l-mkuhjlt-dtiuujnyd-t/
Effective URL: https://finance.yahoo.com/news/how-trump-could-exert-new-controls-over-the-fed--even-without-firing-powell-130015225.html
Submission: On October 30 via manual from US — Scanned from US

Form analysis 2 forms found in the DOM

Name: ybar_mod_searchbox_sGET https://search.yahoo.com/search

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  <div class="finsrch-rslt finsrch-custom-rst finsrch-show-recomlst finsrch-show-ftr hidden modules-module_greenSrchRslt__Iemde modules-module_noDisplay__0NU79">
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      <footer data-id="search-assist-footer" class="modules-module_noDisplay__0NU79">
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    <div data-id="search-assist-input-recomlst">
      <div class="modules-module_sectionHeaderNoBrdr__j5DP2 ">
        <h3 class="modules-module_sectionHeaderTitleLight__NrKIv">Trending Tickers</h3>
      </div>
      <ul role="listbox" class="modules-module_recPillList__VH0mw">
        <li role="option" title="GOOG" tabindex="0" data-type="recommend" data-id="result-recommend-0" data-test="srch-trd-sym" data-index="0" data-pindex="0" class="modules-module_recLinkItem__eEOpb modules-module_selectedBackground__6dnU7">
          <div class="modules-module_recPillContainer__jDQx1">
            <div class="modules-module_recPillDefaultLogo__QoEuV"><img loading="lazy" src="https://s.yimg.com/lb/brands/150x150_google.png" alt="GOOG-logo" class="modules-module_recPillLogo__lI83F"></div><span
              class="modules-module_recPillSymbol__mxoJP">GOOG</span>
            <div class="modules-module_recPriceContainer__fM8pf"><fin-streamer data-symbol="GOOG" data-field="regularMarketPrice" data-trend="none" data-pricehint="2" value="171.14" active="">
                <span>171.14</span>
              </fin-streamer></div>
            <div class="modules-module_recPercentContainer__0wUk2 modules-module_positive__gnzPV percentChangeWrapper">(<fin-streamer class="percentChange modules-module_arrows__x4-uX" data-symbol="GOOG" data-field="regularMarketChangePercent"
                data-trend="txt" data-pricehint="2" value="1.6633023" data-tstyle="default" active="">
                <span class="modules-module_arrows__x4-uX">+1.66%</span>
              </fin-streamer>)</div>
          </div>
        </li>
        <li role="option" title="AMD" tabindex="0" data-type="recommend" data-id="result-recommend-1" data-test="srch-trd-sym" data-index="1" data-pindex="1" class="modules-module_recLinkItem__eEOpb">
          <div class="modules-module_recPillContainer__jDQx1">
            <div class="modules-module_recPillDefaultLogo__QoEuV"><img loading="lazy" src="https://s.yimg.com/lb/brands/150x150_amd.png" alt="AMD-logo" class="modules-module_recPillLogo__lI83F"></div><span
              class="modules-module_recPillSymbol__mxoJP">AMD</span>
            <div class="modules-module_recPriceContainer__fM8pf"><fin-streamer data-symbol="AMD" data-field="regularMarketPrice" data-trend="none" data-pricehint="2" value="166.25" active="">
                <span>166.25</span>
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            <div class="modules-module_recPercentContainer__0wUk2 modules-module_positive__gnzPV percentChangeWrapper">(<fin-streamer class="percentChange modules-module_arrows__x4-uX" data-symbol="AMD" data-field="regularMarketChangePercent"
                data-trend="txt" data-pricehint="2" value="3.9582305" data-tstyle="default" active="">
                <span class="modules-module_arrows__x4-uX">+3.96%</span>
              </fin-streamer>)</div>
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          <div class="modules-module_recPillContainer__jDQx1">
            <div class="modules-module_recPillDefaultLogo__QoEuV">R</div><span class="modules-module_recPillSymbol__mxoJP">RDDT</span>
            <div class="modules-module_recPriceContainer__fM8pf"><fin-streamer data-symbol="RDDT" data-field="regularMarketPrice" data-trend="none" data-pricehint="2" value="81.74" active="">
                <span>81.74</span>
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            <div class="modules-module_recPercentContainer__0wUk2 modules-module_positive__gnzPV percentChangeWrapper">(<fin-streamer class="percentChange modules-module_arrows__x4-uX" data-symbol="RDDT" data-field="regularMarketChangePercent"
                data-trend="txt" data-pricehint="2" value="2.58534" data-tstyle="default" active="">
                <span class="modules-module_arrows__x4-uX">+2.59%</span>
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        <li role="option" title="META" tabindex="0" data-type="recommend" data-id="result-recommend-3" data-test="srch-trd-sym" data-index="3" data-pindex="3" class="modules-module_recLinkItem__eEOpb">
          <div class="modules-module_recPillContainer__jDQx1">
            <div class="modules-module_recPillDefaultLogo__QoEuV">M</div><span class="modules-module_recPillSymbol__mxoJP">META</span>
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              class="modules-module_recPillSymbol__mxoJP">MSFT</span>
            <div class="modules-module_recPriceContainer__fM8pf"><fin-streamer data-symbol="MSFT" data-field="regularMarketPrice" data-trend="none" data-pricehint="2" value="431.95" active="">
                <span>431.95</span>
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                data-trend="txt" data-pricehint="2" value="1.2564795" data-tstyle="default" active="">
                <span class="modules-module_arrows__x4-uX">+1.26%</span>
              </fin-streamer>)</div>
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</form>

<form data-finsrch="quote" role="search" class="dock-srch yf-cs8l6v" fininit="">
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  <div class="finsrch-rslt finsrch-custom-rst finsrch-show-recomlst yf-cs8l6v finsrch-show-ftr modules-module_noDisplay__0NU79">
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      <div class="modules-module_resultsContainerRedesign__yG1rH" data-id="search-assist-input-sugglst"></div>
      <footer data-id="search-assist-footer" class="modules-module_noDisplay__0NU79">
        <p class="modules-module_tipMessage__ZQFev">Tip: Try a valid symbol or a specific company name for relevant results</p>
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    <div data-id="search-assist-input-recomlst">
      <div class="modules-module_sectionHeaderNoBrdr__j5DP2 ">
        <h3 class="modules-module_sectionHeaderTitleLight__NrKIv">Trending Tickers</h3>
      </div>
      <ul role="listbox" class="modules-module_list__hi5kT">
        <li role="option" title="Alphabet Inc." tabindex="0" data-type="recommend" data-id="result-recommend-0" data-test="srch-trd-sym" data-index="0" data-pindex="0"
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              <div class="modules-module_quoteSymbol__BGsyF">GOOG</div>
              <div class="modules-module_quoteCompanyName__JVZCM modules-module_Ell__N1WPm">Alphabet Inc.</div>
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            <div class="undefined"><span>Equity</span><span class="modules-module_quoteTypeExchange__omxiA">NMS</span></div>
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          <div class="modules-module_quoteLeftCol__yV9LA modules-module_Ell__N1WPm modules-module_IbBox__NPYId">
            <div class="modules-module_quoteCompanyInfo__ULJ7V modules-module_Ell__N1WPm">
              <div class="modules-module_quoteSymbol__BGsyF">AMD</div>
              <div class="modules-module_quoteCompanyName__JVZCM modules-module_Ell__N1WPm">Advanced Micro Devices, Inc.</div>
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          </div>
          <div class="modules-module_quoteRightCol__iH6f-">
            <div class="undefined"><span>Equity</span><span class="modules-module_quoteTypeExchange__omxiA">NMS</span></div>
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        </li>
        <li role="option" title="Reddit, Inc." tabindex="0" data-type="recommend" data-id="result-recommend-2" data-test="srch-trd-sym" data-index="2" data-pindex="2"
          class="modules-module_linkItemLgNeoGreenLg__X88Wg modules-module_quoteItem__W8hI- ">
          <div class="modules-module_quoteLeftCol__yV9LA modules-module_Ell__N1WPm modules-module_IbBox__NPYId">
            <div class="modules-module_quoteCompanyInfo__ULJ7V modules-module_Ell__N1WPm">
              <div class="modules-module_quoteSymbol__BGsyF">RDDT</div>
              <div class="modules-module_quoteCompanyName__JVZCM modules-module_Ell__N1WPm">Reddit, Inc.</div>
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          <div class="modules-module_quoteRightCol__iH6f-">
            <div class="undefined"><span>Equity</span><span class="modules-module_quoteTypeExchange__omxiA">NYQ</span></div>
          </div>
        </li>
        <li role="option" title="Meta Platforms, Inc." tabindex="0" data-type="recommend" data-id="result-recommend-3" data-test="srch-trd-sym" data-index="3" data-pindex="3"
          class="modules-module_linkItemLgNeoGreenLg__X88Wg modules-module_quoteItem__W8hI- ">
          <div class="modules-module_quoteLeftCol__yV9LA modules-module_Ell__N1WPm modules-module_IbBox__NPYId">
            <div class="modules-module_quoteCompanyInfo__ULJ7V modules-module_Ell__N1WPm">
              <div class="modules-module_quoteSymbol__BGsyF">META</div>
              <div class="modules-module_quoteCompanyName__JVZCM modules-module_Ell__N1WPm">Meta Platforms, Inc.</div>
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          </div>
          <div class="modules-module_quoteRightCol__iH6f-">
            <div class="undefined"><span>Equity</span><span class="modules-module_quoteTypeExchange__omxiA">NMS</span></div>
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HOW TRUMP COULD EXERT NEW CONTROLS OVER THE FED — EVEN WITHOUT FIRING POWELL


Ben Werschkul · Washington Correspondent
October 13, 2024 6 min read

1.1k


Donald Trump and his allies have floated ideas suggesting that Federal Reserve
independence could be compromised if the GOP nominee wins, from firing Chairman
Jerome Powell to the president having a "say" in setting interest rates.

But even as Trump has tried to distance himself from some of those suggestions,
a range of other options remain on the table that could fundamentally change the
White House relationship with the central bank if the former president wins.



These range from the notion of a "shadow" Fed chair to ideas laid out in a
document known as "Project 2025" to an effort to upend D.C. (and possibly the
Fed's) bureaucracy.

And these options are circulating as Trump renews his critiques of the Fed
following a hotter-than-expected inflation reading this past week.

"The fact is that the Federal Reserve brought the interest rates down a little
too quickly," he told the Detroit Economic Club Thursday. "Everyone knows that
was a political maneuver that they tried to do before the election," he added.


Former President and Republican presidential candidate Donald Trump before the
Detroit Economic Club on Oct. 10. (JEFF KOWALSKY/AFP via Getty Images) · JEFF
KOWALSKY via Getty Images

The issue has also emerged as a clear dividing line in the 2024 campaign, with
Democratic nominee Vice President Kamala Harris saying in August that she
disagrees with Trump's approach and that "the Fed is an independent entity, and
as president, I would never interfere in the decisions that the Fed makes."

The Biden White House has also weighed in on "the importance of an independent
central bank."

Trump downplayed the notion of firing Powell directly, "especially if I thought
he was doing the right thing," and has also partially walked back a previous
comment about having "a say" in interest rate decisions.


A NOTION OF A 'SHADOW FED CHAIR'

The idea of a "shadow" Fed chair that emerged this past week came from top Trump
economic adviser Scott Bessent, the former Soros Fund Management investing chief
(and a possible Trump pick for Treasury Secretary).

He floated the notion in a Barron's interview that Trump could nominate that
"shadow" chair to essentially make Powell a lame duck long before his term ends.

Powell's full term as a member of the Fed's board of governors doesn't end until
2028, but his time atop the Federal Reserve as chair ends sooner, in 2026.



This idea would lay out a post-Powell Fed path even while he's still in office,
and "based on the concept of forward guidance, no one is really going to care
what Jerome Powell has to say anymore," Bessent told the outlet.

Story Continues

Trump has also already promised he wouldn't nominate Powell to a third term as
chair and is already floating possible successors.


Then-President Donald Trump waves after announcing Federal Reserve board member
Jerome Powell as his nominee for chair of the Federal Reserve at the White House
in 2017. (Jabin Botsford/The Washington Post via Getty Images) · The Washington
Post via Getty Images

Trump hasn't expressed an opinion on the idea — and a Trump official cautioned
that anything not endorsed by Trump himself shouldn't be deemed as official
second-term policy — but Bessent himself is clearly top of mind for Trump, who
brings him up often at his rallies.

He called him "one of the top analysts on Wall Street" during the Detroit
Economic Club stop this week.


IDEAS FROM PROJECT 2025

The 900+ page "Project 2025" blueprint produced by the conservative Heritage
Foundation also posits a series of ideas for the Fed.

They range from changes to how the Fed intervenes in the economy to
institutional changes "to take the monetary steering wheel out of the Federal
Reserve's hands and return it to the people."

Trump has sought to distance himself from the ideas in the book, but it was
authored by many of his former aides. The 13-page Federal Reserve chapter was
penned by Paul Winfree, who previously served in the Trump White House as deputy
assistant for domestic policy.



Many of the ideas Winfree proposes are focused on paring back the Fed's powers
that, according to the book, have overly broadened since the central bank was
created in 1913.

It would, for example, abolish the Fed's "dual mandate," focusing instead solely
on inflation.

Winfree is also critical of the central bank's ability to influence commercial
banks' capital requirements. It's a critique that overlaps directly with a
raging current debate in Washington around the "Basel III endgame" capital
requirements.


A Democratic billboard decrying Project 2025 is seen outside the vice
presidential debate sight in Manhattan on Oct. 1. (Roy Rochlin/Getty Images) ·
Roy Rochlin via Getty Images

The chapter weighs in on another ongoing debate: the Fed's policy of
"quantitative easing," where the central bank has used purchases of securities
to impact the money supply.

The Project 2025 proposal would force a winding down of the Fed's balance sheet
and also limit future purchases.

Winfree's biggest idea — and perhaps his least politically realistic one — would
replace the central bank with more diffuse banks committed to a concept he calls
"free banking" — overlooking that the Federal Reserve was created largely in
response to the failures of a similarly diffuse system.


GREATER CONTROL OVER 'INDEPENDENT' FEDERAL AGENCIES

A third area where a second Trump White House and the Fed could clash is Trump's
priority of asserting greater control over the federal bureaucracy and
independent government agencies like the Federal Trade Commission and Federal
Communications Commission.

It's an effort Trump hasn't said would include the Fed, but Powell and his
colleagues could be in his sights. On his campaign website, Trump promises "a
top-to-bottom overhaul of the federal bureaucracies."

This is an effort to lessen the protections that thousands of government
employees have enjoyed from changing political winds. When taking office,
presidents typically have around 4,000 so-called "political" appointments to
make. But Trump and his allies want to balloon that number to more than 50,000.


The Federal Reserve's Marriner S. Eccles Building is seen 2022 in Washington,
D.C. (Kevin Dietsch/Getty Images) · Kevin Dietsch via Getty Images

Agencies like the Fed and FTC also currently operate at arm's length from the
White House, in a structure the GOP nominee has long critiqued.

"We need to make it much easier to fire rogue bureaucrats who are deliberately
undermining democracy," Trump said back in 2022.

If his proposed reforms are enacted, he added, "Washington will be an entirely
different place."

Ben Werschkul is Washington correspondent for Yahoo Finance.

Click here for political news related to business and money policies that will
shape tomorrow's stock prices

Read the latest financial and business news from Yahoo Finance


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