JD Vance: “The political leadership of this country should have a greater say on the monetary policy of the United States”

My transcription of JD Vance’s statement re: the Fed, on “State of the Union”, interviewed by Dana Bash today. Might’ve gotten a few words wrong, but got the essence I think.

(with apologies to the ProjectSyndicate graphic artist).

JD Vance agreed with Trump’s policy position, characterizing it as “profound”. I outsource commentary on this policy prescription to Maury Obstfeld at PS :

Trump’s advisers are reportedly considering two complementary policy changes. One proposal reportedly involves increasing direct presidential control over the Fed’s interest-rate decisions and rulemaking. Simultaneously, Trump’s trade team, led by former US Trade Representative Robert Lighthizer, apparently wants to weaken the dollar’s exchange rate.

While some Trump advisers have denied any plans to devalue the dollar, Trump’s preference for lower interest rates and a weaker currency was evident during his first term. The proposed policies would make it easier for him to override the Fed’s independence and achieve both objectives. The result would 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 a Trump-Vance administration.