Trump adviser: Fed chair should not be 'independent' of administration

Trump adviser: Fed chair should not be 'independent' of administration
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An economist and adviser to President TrumpDonald TrumpTrump PACs brought in over M for the first half of 2021 Chicago owes Trump M tax refund, state's attorney mounts legal challenge Biden hits resistance from unions on vaccine requirement MORE said Federal Reserve Board Chairman Jerome Powell should work with the White House and lower interest rates, arguing that the board should not be independent of the White House.

In an interview with AM 970's "The Answer," Dr. Arthur Laffer told host John Catsimatidis that Powell probably "doesn't feel good" about the criticism he has received from the president in recent months over interest rates, but urged him to be "professional" and lower rates anyway.


“I’m sure Powell doesn’t feel good about Donald Trump. But, you know, it’s not his job to feel good or bad about Donald Trump. The Fed shouldn’t be independent of the Administration. Never should be. None of those people were elected. They were all appointed. And there’s no reason for them being appointed," Laffer said.

"It’s a policy tool that should be in the hands of the Congress and the President to make our country better. Not in the hands of some Princeton professors who never worked a day in their lives except on an academic paper that’s far from reality. I don’t think there should be an independent Fed," Laffer continued, adding: "He should be a professional and lower rates.”

Trump hinted at ongoing conflicts with Powell during an interview with The Hill last week, stating that the Fed chair was "incorrect" to assume that he was entitled to serve a four-year term.

When asked if he believes the president has the authority to dismiss a Federal Reserve board chairman, Trump replied that he could "if I wanted to, but I have no plans to do anything."