Vance backs Trump’s support for a presidential ‘say’ on Federal Reserve’s interest rate policy

AP Economics Writer

WASHINGTON (AP) — JD Vance has endorsed former President Donald Trump’s call for the White House to have “a say” over the Federal Reserve’s interest rate policies — a view that runs counter to decades of economic research suggesting that politically independent central banks are essential to controlling inflation and maintaining confidence in the global financial system. Economists have long cautioned that a Fed that is legally independent from elected officials is vital because politicians would almost always prefer for the central bank to keep interest rates low to juice the economy — even at risk of igniting inflation.