{"id":250142,"date":"2024-11-13T11:27:48","date_gmt":"2024-11-13T11:27:48","guid":{"rendered":"https:\/\/www.ghanamma.com\/2024\/11\/13\/elon-musk-wants-to-radically-reshape-who-controls-americas-money-supply\/"},"modified":"2024-11-13T11:27:48","modified_gmt":"2024-11-13T11:27:48","slug":"elon-musk-wants-to-radically-reshape-who-controls-americas-money-supply","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2024\/11\/13\/elon-musk-wants-to-radically-reshape-who-controls-americas-money-supply\/","title":{"rendered":"Elon Musk wants to radically reshape who controls America\u2019s money supply"},"content":{"rendered":"<p><\/p>\n<div>\n<p class=\"article-image\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.ghanaweb.com\/imagelib\/pics\/627\/62712868.295.jpg\" alt=\"Elon Musk, owner of the X app\" title=\"Elon Musk, owner of the X app\" width=\"295\" height=\"159\" \/> <span class=\"image_caption\"><span>Elon Musk, owner of the X app<\/span><\/span><\/p>\n<\/div>\n<div style=\"-webkit-user-select: none; -webkit-touch-callout: none; -moz-user-select: none; -ms-user-select: none; user-select: none;\">\n<p id=\"article-123\"> President-elect Donald Trump\u2019s return to the White House already carried the potential for sweeping changes to the Federal Reserve. But now a growing question is not how the central bank will operate under Trump but if it\u2019ll continue to operate at all.<\/p>\n<p>Elon Musk, a key Trump backer who is expected to have considerable sway in helping shape Trump\u2019s policies, included a \u201c100\u201d emoji while resharing Republican Sen. Mike Lee of Utah\u2019s post on X calling for abolishing the Fed.<\/p>\n<p>\u201cThe Executive Branch should be under the direction of the president,\u201d Lee said Thursday in a post on X, hours after Fed Chair Jerome Powell told reporters he wouldn\u2019t resign if Trump asked him to.<\/p>\n<p>\u201cThe Federal Reserve is one of many examples of how we\u2019ve deviated from the Constitution in that regard,\u201d Lee added. \u201cYet another reason why we should #EndTheFed.\u201d<\/p>\n<p>Asked where Trump stands on the matter, Trump-Vance transition spokesperson Karoline Leavitt told CNN: \u201cPolicy should only be deemed official if it comes from President Trump directly.\u201d<\/p>\n<p>Calls to abolish the Fed are hardly new. Former congressman Ron Paul, who ran for president once as a Libertarian and twice as a Republican, published a book in 2009 titled \u201cEnd the Fed.\u201d<\/p>\n<p>Then in June, Republican Rep. Thomas Massie of Kentucky and Lee introduced corresponding bills aimed at uprooting the nation\u2019s central bank and shifting its responsibilities to the Treasury Department.<\/p>\n<p>But thus far, Trump has not publicly voiced his support for dismantling the Fed. On the campaign trail, he has, however, advocated for changing the central bank\u2019s rulebook, to the dismay of many economists.<\/p>\n<p><b>Challenging the Fed\u2019s independence<\/b><\/p>\n<p>\u201cThe American people re-elected President Trump by a resounding margin giving him a mandate to implement the promises he made on the campaign trail. He will deliver,\u201d Leavitt said in an emailed statement to CNN.<\/p>\n<p>Those promises include bringing interest rates \u201cway down,\u201d which Trump vowed to do if elected at the National Association of Black Journalists\u2019 annual conference in August. Presidents, however, don\u2019t have any direct influence over the rates Americans pay to borrow money.<\/p>\n<p>For over 70 years, it\u2019s been the duty of the central bank to set rates at levels aimed at fulfilling its congressional mandate for price stability and maximum employment. And throughout that time, Congress has also guaranteed the Fed\u2019s ability to act as an independent body, devoid of any political interference.<\/p>\n<p>That\u2019s empowered Fed officials to make interest rate decisions that aren\u2019t necessarily popular but could help the nation\u2019s economy in the long run.<\/p>\n<p>For instance, central bankers resisted calls to lower rates, instead opting to keep rates at a two-decade high for a year to rein in stubborn inflation. It wasn\u2019t until two months ago that they finally cut rates as inflation cooled to just shy of the Fed\u2019s 2% target.<\/p>\n<p>But on the campaign trail, Trump floated requiring Fed officials to consult with him on interest rate decisions. That could lead to pressure on Fed officials to keep rates lower to satisfy Trump\u2019s wishes, which in turn could reignite inflation.<\/p>\n<p>During his first term, Trump also threatened to remove or demote Fed Chair Jerome Powell, whom he has at times blamed for keeping interest rates too high.<\/p>\n<p>It\u2019s unclear if Trump has the legal authority to overhaul the Fed\u2019s independence on his own, let alone at all, or remove a Fed appointee before their term expires. On the latter, Powell, a lawyer himself, made his view abundantly clear when asked by a reporter at last week\u2019s press conference after the Fed\u2019s two-day monetary policy meeting. \u201cNot permitted under the law,\u201d he briskly responded.<\/p>\n<p>That\u2019s because the head of America\u2019s central bank can only be fired \u201cfor cause,\u201d as specified in the Federal Reserve Act. The exact interpretation of what would constitute a for-cause firing has not been precisely defined, but it\u2019s reasonable to assume that it would entail a lot more than just having policy differences with the president.<\/p>\n<p>A spokesperson for the Fed declined to comment.<\/p>\n<p><b>Testing the waters<\/b><\/p>\n<p>If there\u2019s any time for Trump to test the Fed\u2019s ability to maintain its status quo, it would probably be in 2025. While the balance of power in the House hasn\u2019t been determined, Republicans have majority control of the Senate. Additionally, six of the nine Supreme Court justices were appointed by Republican presidents and half of those six were appointed by Trump in his first term.<\/p>\n<p>But anyone challenging the Fed in the nation\u2019s highest court shouldn\u2019t expect to necessarily come out victorious. In a 7-2 court ruling this year, the Supreme Court ruled the Consumer Financial Protection Bureau could continue to operate in its current form despite many Republican lawmakers\u2019 arguments that its structure was unconstitutional.<\/p>\n<p>And last month, the court declined to hear a case that threatened to dismantle the independent Consumer Product Safety Commission. Like officials sitting on the Fed\u2019s Board of Governors, members of the Consumer Product Safety Commission\u2019s board can only be removed by a president for cause.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Elon Musk, owner of the X app President-elect Donald Trump\u2019s return to the White House already carried the potential for sweeping changes to the Federal Reserve. But now a growing question is not how the central bank will operate under Trump but if it\u2019ll continue to operate at all. Elon Musk, a key Trump backer [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":250143,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-250142","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Elon Musk wants to radically reshape who controls America\u2019s money supply - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2024\/11\/13\/elon-musk-wants-to-radically-reshape-who-controls-americas-money-supply\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Elon Musk wants to radically reshape who controls America\u2019s money supply - Ghanamma.com\" \/>\n<meta property=\"og:description\" content=\"Elon Musk, owner of the X app President-elect Donald Trump\u2019s return to the White House already carried the potential for sweeping changes to the Federal Reserve. 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