Senator JD Vance fully supports former President Donald Trump’s opinion that elected officials should play a larger role in determining monetary policy.

Republican vice presidential candidate Senator JD Vance (R-Ohio) restated former President Donald Trump’s belief that the president should be involved in federal monetary policy. In an interview on CNN’s “State of the Union” on August 11, host Dana Bash questioned Vance about his running mate’s recent remarks. Trump expressed his view that the president should play a role in Federal Reserve policy, which affects the economy of almost every American.

When questioned about Trump’s statement, Vance emphasized that he fully supports the former president. He explained that elected officials should have a say in the decisions made by the Federal Reserve.
Vance believes that Trump’s point about political leaders having more influence over monetary policy is significant and insightful. He agrees with Trump on this matter.

Vance said that America’s elected leaders should have a say in the most important decisions facing our country, whether we agree with them or not.

Currently, the president cannot control the decisions made by the Federal Reserve, as those responsibilities mainly belong to the chairman and board of the central bank.
Nevertheless, the president selects and the Senate confirms the chairman, vice chairs, and board members.

In his first term as President, Trump complained about the Federal Reserve raising interest rates multiple times, which made it more expensive for Americans to borrow money. Even though Trump appointed Jerome Powell as the chair of the Fed, they still increased the rate for two years until the end of 2018, despite Trump’s complaints.

In August 2024, the Federal Reserve interest rates are currently at 5.33 percent. The rates have been increased several times by the Federal Reserve since 2021 to combat the effects of inflation. Vance, at the urging of Bash, recognized that allowing the president to have a say in Fed policy would be a significant change.
He viewed it as a more democratic way to handle monetary policy in the United States.

Vance stated that important questions, such as whether the country goes to war or what our interest rates are, should have important answers in American democracy.
He believes that President Trump is pointing out the large number of bureaucrats making important decisions, and suggests that if the American people don’t like the interest rate policy, they should elect someone else to change it.
Vance emphasizes that nothing in this country should be above democratic debate when it comes to big questions facing the United States.

Trump spoke about the Fed two days before Vance’s interview was shown. He mentioned that the Fed has often made mistakes. Trump believes he has better instincts than many people on the Federal Reserve, including the chairman. He mentioned having strong disagreements with Powell in the past.

A change in Fed policy to give the president more direct control over monetary policy would likely require new legislation, which could be difficult for Republicans to pass through the Senate if it faced substantial opposition from Democrats.

Under the Federal Reserve Act of 1913, which established the bank, the Federal Reserve exists in a state of limbo between public and private operation. Though it handles decisions related to the U.S. dollar, the Federal Reserve exists as an entity largely independent of the U.S. government.