Part 7/11:
Trump’s influence isn’t confined to appointments or legal maneuvers. He actively uses public pressure, media platforms, and executive actions to sway the Fed’s direction. He has claimed familiarity with interest rates, asserting that he understands them better than the Fed and that he would intervene when they act contrary to his wishes.
In February, Trump issued an executive order demanding the Fed submit regulatory changes for White House review—an unprecedented move that many viewed as an attempt to assert political influence over technically independent monetary policy. Although the order exempted monetary policy from direct control, it sent a clear signal that the Trump administration aimed to influence the Fed’s operations.