Staff Reports
J.D. Vance has jumped on the bandwagon with Donald Trump’s recent call for greater presidential involvement in the Federal Reserve’s interest rate policies. This move sets off alarms among the economic elite, who have spent decades insisting that a politically independent central bank is the holy grail for managing inflation and maintaining trust in the financial system. But who needs experts when you have common sense on your side?
Vance, the Republican VP nominee, voiced his agreement that the political leaders of the country should wield more influence over monetary policy. He made this statement over the weekend and is clearly basking in the glow of Trump’s economic vision. Rather than bowing down to ivory tower economists who warn about the dangers of political meddling, Vance echoes Trump’s sentiment that it’s time for the president to have a say in how interest rates are handled, a refreshing take in a sea of bureaucratic red tape.
JD Vance on Trump's plan to undermine the independence of the Federal Reserve:
"President Trump is saying…the political leadership of this country should have more say over the monetary policy of this country. I agree…that should fundamentally be a political decision." pic.twitter.com/5wuXjG783m
— Republican Voters Against Trump (@AccountableGOP) August 11, 2024
Of course, the usual talking heads are rushing to the defense of the so-called independence of the Fed, arguing that allowing politicians to inject themselves into its operations is a recipe for disaster. One particularly dramatic economist cited the case of Turkey, where President Recep Tayyip Erdogan’s influence over interest rates led to inflation skyrocketing past 65%. But when did Turkey become the gold standard for U.S.
Economic policy? American exceptionalism means taking a few risks, and perhaps even the peanut gallery of economists should consider that.
Moreover, the Federal Reserve’s ability to maneuver interest rates is all fine and dandy, but let’s not forget who pays the price for their calculations — the average American. With interest rates climbing following the pandemic, consumers are left scrambling to deal with the cost of mortgages and credit. Vance’s and Trump’s proposition to bring some accountability into the Fed’s decisions could mean a move toward more predictable and stable economic conditions for hardworking Americans.
While the left is digging in its heels on the sanctity of Fed independence, Kamala Harris took a break from her usual duties to declare her disagreement, fortifying her reputation as a staunch defender of the bureaucratic status quo. But one has to wonder, wouldn’t it benefit the average citizen more to have elected officials accountable to the people getting involved in the decision-making processes that directly affect their wallets?
In the end, Vance and Trump’s vision of a government that actually listens to the people and adjusts policies accordingly against the cadence of a central bank likely working against those interests could resonate well beyond the economic sphere. After all, a little leadership in the right direction beats a rigid doctrine that leaves the everyday American in the lurch. The debate is on, and it promises to be one for the ages.
