Vance backs Trump on president influencing Federal Reserve decisions

Former President Trump's vice presidential nominee Sen. JD Vance, R-Ohio, said on Sunday that he backs Trump's call for presidents to have a say in the Federal Reserve board's policy-making process, including decisions about raising interest rates, saying those should be "political decisions."

Vance made his remarks in an interview on CNN's "State of the Union" program after Trump on Thursday said he thinks the president "should have at least [a] say in there" when the Fed makes monetary policy moves.

"I agree with him," Vance said of Trump. "That should fundamentally be a political decision. Agree or disagree, we should have America's elected leaders having input about the most important decisions that confront our country."

Vance added that it would be "a huge change" to move away from the long-held stance that the Federal Reserve's monetary policy decisions should be made independently of political influences from elected officials.

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He emphasized that in his and Trump's view, the president should "not direct" monetary policy and added, "To be clear, President Trump is saying, I think, something that's really important and actually profound, which is that the political leadership of this country should have more say over the monetary policy of this country."

"If the American people don't like our interest rate policy, they should elect somebody different to change that policy. Nothing should be above democratic debate in this country when it comes to the big questions confronting the United States," Vance said.

Trump spoke during a Thursday press conference at his Mar-a-Lago residence in Florida and said "the president should have at least [a] say in there" and added, "I think that 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."

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When Trump was in office, he frequently attacked the Fed's policymaking decisions and the central bank's leadership. The former president has also often criticized Chair Jerome Powell – whom he appointed to the role in 2017 – for raising interest rates, including threatening to fire him and admonishing him as a "bonehead."

Trump criticized the Fed in his Thursday remarks for getting "it wrong a lot" and called out Powell for being a "little bit too early and a little bit too late" in moving interest rates.

The Federal Reserve's monetary policy decisions are made independently of input from politicians to ensure policy decisions made in support of the central bank's dual mandate to promote price stability and full employment are made without short-term political considerations in mind. 

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Powell has repeatedly stressed the importance of the Fed's political independence and said that criticism from Trump or other politicians doesn't impact the central bank's monetary policy decisions.

"Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time," Powell said at a conference in January 2023. "But restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy. The absence of direct political control over our decisions allows us to take these necessary measures without considering short-term political factors."

He said in a conference in July that, "I do think support for the Fed's independence is very high, where it really matters on Capitol Hill, in both parties."

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Powell's second term as Fed chair ends in May 2026 and his position on the Fed's board continues until 2028. 

Trump has said he'll allow Powell to finish his term at the helm of the Federal Reserve if he wins in November, but added that he would not reappoint Powell for a third term.

"I think he's political," Trump said during a February interview with FOX Business' Maria Bartiromo. "I think he's going to do something to probably help the Democrats, I think, if he lowers interest rates."

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Vice President Kamala Harris, who officially became the Democratic Party's presidential nominee earlier this month after President Biden withdrew from the race in July, said Saturday that she disagreed with Trump's opinion that the president should be 

"The Fed is an independent entity and as president I would never interfere in the decisions that the Fed makes," Harris told reporters in Arizona.

FOX Business' Megan Henney and Reuters contributed to this report.