US election risk – Trump wants a say in Federal Reserve decisions

Clearer lines are being drawn between the two major parties in the US presidential election.

Republican nominee Trump spoke on CNBC:

• “I feel the president should have at least (a) say in there,” Trump said during a news conference at his Mar-a-Lago residence in Florida. “Yeah, I feel that strongly. 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.”

Trump’s opinion doesn’t seem to stretch to getting a vote on the Federal Open Market Committee (FOMC), all he has said is he wants a “say”. Its probably naive to suggest that the word of a President on monetary policy decisions wouldn’t carry a lot of weight though.

Politicians having a say over central bank decisions is not unusual in some parts of the world. China is the prime example, the Politburo there control the PBOC tightly. Turkey, also, gave it a shot.

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As an aside. Feel free to leave comments. As we approach the election I realise people are going to be triggered and get heated. But keep the comments fact-based and free of personal attacks.

This article was written by Eamonn Sheridan at www.forexlive.com.