Get All Access for $5/mo

Trump Says the U.S. President Should Have 'a Say' in Federal Reserve Decisions The Fed has controlled interest rates since the 1950s.

By Sherin Shibu Edited by Melissa Malamut

Key Takeaways

  • At a press conference at Mar-a-Lago Thursday, former President Donald Trump said that the executive office should have more power over federal interest rates.
  • "I feel that the president should have at least a say" in setting interest rates, Trump said.

In 1951, the Treasury-Fed Accord established the Federal Reserve's independence, giving the agency the authority to set interest rates without the influence of the executive branch. Now, as the Fed faces calls to cut interest rates to head off a possible recession, Republican presidential candidate and former President Donald Trump wants the President to have more of a voice in interest rate policy.

"I feel that the president should have at least a say" in setting interest rates, Trump said at a Thursday press conference at his Mar-a-Lago resort in Palm Beach, Florida.

The Fed has "gotten it wrong a lot," Trump added, noting that Fed chair Jerome Powell, who Trump nominated to the post in 2017, "is tending to be a little bit later on things."

Related: Jamie Dimon Says a Mild Recession Is Still on the Table: 'There's a Lot of Uncertainty Out There'

Trump said that setting interest rates was more about instinct, or a gut feeling.

"In my case, I made a lot of money, I was very successful," Trump said. "I think I have a better instinct than, in many cases, people that would be on the Federal Reserve or the chairman."


Donald Trump speaks during a press conference at his Mar-a-Lago estate on August 08, 2024. Credit: Joe Raedle/Getty Images

Powell and Trump had a contentious relationship when Trump was in office from 2016 to 2020. Trump publicly called out Powell for not raising rates or lowering them enough at various points throughout his term and repeated criticisms of the Fed's policies to reporters and in speeches.

Related: JPMorgan CEO Jamie Dimon Offers Policy Advice to Donald Trump, Kamala Harris

Powell's term ends in 2026, so the next President will pick the next Fed chair. Trump said in February that he wouldn't reappoint Powell if he wins; in July he said he would allow Powell to serve out his term, and Powell said that he would stay in his post until his term expires.

After Trump's remarks on Thursday, Jared Bernstein, chair of the White House Council of Economic Advisers, reposted a May analysis of the importance of an independent central bank on X.

"History could not be clearer regarding the lasting & damaging inflationary consequences of ignoring this lesson or reversing the hard-earned progress of the past half century," Bernstein wrote, quoting the report.

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.