Trump’s visit to the Federal Reserve today may not follow the history of the president, which depends on independence

The President will visit the central bank at 4 pm East time on Thursday, and will return to the White House shortly after more than an hour, according to his general grandparent.

This step is unusual for several reasons. In the first place, because this is the first visit by the head of the Central Bank for nearly two decades – and only the fourth visit from the Oval Office in history.

The context of this visit raises the eyebrows, as President Trump and the Council of Ministers They were constantly pressing and criticizing the federal reserve since it won the Oval Office in January.

In the past, the president’s visits to the Federal Reserve were considered approvals – whether from the president at the time and the independence of the Federal Reserve as a whole.

For example, the last visit came from George W. Bush on February 6, 2006, when he attended the oath of his candidate, Ben S.

Bush’s presence was seen as support not only for Burnaki but also for the independent nature of the dramatic. When announcing his candidacy“In our economy, the Federal Reserve is the independent body responsible for the status of monetary policy, to oversee the safety of our banking system, for containing risks that can arise in financial markets, and to ensure the general payment system,” Bush told reporters at the Oval Office.

“Throughout the world, the Federal Reserve is the symbol of integrity and the reliability of our financial system, and the federal reserve decisions affect the life and livelihood of all Americans.”

Before Bush’s visit, the latest example of the president who visited the Federal Reserve was President Gerald Ford in July 1975-which was built in the independence of the central bank.

Speaking of Philip C Jackson’s performance as a member of the Governor, President Ford said: “The essence of the federal reserve system is independence. The independence of both Congress and the president, as well as the independence of individual thought in all of its rulers. I respect this independence firmly.”

The last example – but the first visit of its kind – in 1937 when President Franklin Roosevelt attended the opening of the new headquarters of the council – the Eucleis building, which President Trump is likely to visit today.

Trump against the federal reserve so far

Even before Trump’s victory in the elections, there were signs that might cause a problem in President Jerome Powell. Although he was the president to nominate Powell for this role, he has made veiled threats about the security of the president’s role. he Bloomberg said: “I would like to allow him to serve (his mandate), especially if I believed that he was doing the right thing.”

At that time, the “right thing” in Trump’s minds was not reducing interest rates because it would give the economy, and Biden administration at that time, a boost.

Since the Oval Office was taken in January, this request has turned to the other party. Trump called Powell “Stupid” and “difficult” To not cut the basic price, adding that he knows More than the President of the Federal Reserve on interest rates.

While some market followers may agree with Trump that Powell and the Federal Open Market Committee interact very slowly with economic data, no analyst or investor wants to see the threatened central bank independence.

As such, the market’s reaction was largely when Trump threatened to shoot Powell, then settled when the president abolished the proposal. After all, the federal reserve independence of the full moon was written in a law to protect it from the whims of politicians and instead imposes it on ensuring the health of the economy in the long term.

while Federal reserve policy for the Trump administration remains a common topic (Until yesterday, the president He wrote about social truth “Families are hurt because interest rates are very high, and even our country should pay a rate higher than it should be because of” very late (Powell). ”

This included the Powell administration of the Central Bank offices – which will be said that Trump will tour today – with Russell Fair, Director of the Management and Budget Office at the White House, Make the audience a message He sent to the Federal Reserve Chairman, saying that the president is “very troubled by your administration of the Federal Reserve System in particular regarding” comprehensive reform of Washington, DC, headquarters. ”

Powell has responded since thenAnd clarifying, some of the points raised in the Vogue message, noting: “The project is large … because it involves renewing two historical buildings in the national commercial center that was created for the first time in the 1930s. While the periodic work was implemented to preserve these operating buildings, none of the buildings have witnessed a comprehensive renewal since it was built.”

Although the Federal Reserve has independence in managing its business and expenses, Powell reaffirmed the bank’s commitment to “transparency of our decisions and accountability towards the public”-a new section was established from the FBI’s website to maintain voters, defining the latest developments.