President Trump Friday doubled down on his assertion that the Federal Reserve needs to stop raising interest rates.
Most analysts are in an uproar. But Richard Bove, Equity research analyst at Hilton Capital Management, write on CNBC’s website that this is only the beginning.
From his piece:
President Donald Trump has multiple reasons as to why he should take control of the Federal Reserve. He will do so both because he can and because his broader policies argue that he should do so. The president is anti-overregulating American industry. The Fed is a leader in pushing stringent regulation on the nation. By raising interest rates and stopping the growth in the money supply it stands in the way of further growth in the American economy.
First, He Can:
The Board of Governors of the Federal Reserve is required to have seven members. It has three. Two of the current governors were put into their position by President Trump. Two more have been nominated by the president and are awaiting confirmation by the Senate. After these two are put on the Fed’s board, the president will then nominate two more to follow them. In essence, it is possible that six of the seven Board members will be put in place by Trump.
The Federal Reserve is no doubt a very valuable institution. But there are seven Articles and 27 Amendments to the Constitution. Not one of them mentions anything about an unelected body called the Federal Reserve.
Here’s some video of Milton Friedman discussing how the Fed caused the Depression.