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Trump's Fed Chair Plan: Good or Bad for the Economy?

10 Jul 2025 · 0 min

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TJ Walker argues Trump's plan to replace the Fed chair with someone who'll lower rates would politicize the central bank. He points to the 1980s: if presidents could pick Fed policy for elections, Jimmy Carter might have avoided the 20% interest rates that cost him re-election.

So Donald Trump wants to fire the Fed chair that he appointed himself and pick someone else who will be more pliable and give him the interest rates he wants. Well, if you think that's a good idea, then you think it's a bad idea that Ronald Reagan was ever elected. Because if presidents got to pick their own Fed chair, Jimmy Carter would have picked someone who didn't have 20% interest rates in 1980. He could have picked someone to bring rates to zero to help him get re elected.

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