Sunday, April 28, 2024

Trump's team wants to restructure the Fed and let him have a say on interest rate decisions: WSJ (Business Insider)

Billionaire putative developer DONALD JOHN TRUMP has been a frequent critic of Federal Reserve Board policies. The Federal Reserve Board is independent, and for a reason.  TRUMP wants to abolish independence in a number of agencies. 

Letting billionaire TRUMP help run the Federal Reserve Board would be akin to putting Dracula in charge of the blood bank. 

Conflicts of interest  must be scrupulously guarded against. See, e.g., United States v. Mississippi Valley Generating Co., 364 U.S. 520, 548 (1961)("the 'Dixon-Yates' case," involving TVA rivals' conflicts of interest in a proposed Memphis coal-fired powerplant), citing Matthew 6:24 -- "no [person] can serve two masters," holding that laws and rules preventing conflicts of interest are aimed "not only at dishonor but at conduct that tempts dishonor."   All conflict of interest laws are based upon Matthew 6:24 ("A man cannot serve two masters"), which the unanimous Supreme Court decision by Chief Justice Earl Warren deemed to be both a "moral principle" and a "maxim which is especially pertinent if one of the masters happens to be economic self-interest."

James Madison wrote in The Federalist No. 10: "No [person] is allowed to be a judge in [his/her] own cause, because his interest would certainly bias his judgment, and, not improbably, corrupt his integrity. With equal, nay with greater reason, a body of men are unfit to be both judges and parties at the same time . . . ."

The Supreme Court held in In re Murchison, 349 U.S. 133, 136 (1955) (Black, J.), "[O]ur system of law has always endeavored to prevent even the probability of unfairness. To this end no man can be a judge in his own case and no man is permitted to try cases where he has an interest in the outcome." See also TWA v. Civil Aeronautics Board, 102 U.S. App. D.C. 391, 392, 254 F.2d 90, 91 (1958). Spencer v. Lapsley, 20 How. 264, 266 (1858); Publius Syrus, Moral Sayings 51 (D. Lyman transl. 1856) ("No one should be judge in his own cause."); Blaise Pascal, Thoughts, Letters and Opuscules 182 (Wight transl. 1859) ("It is not permitted to the most equitable of men to be a judge in his own cause.")

As William Blackstone wrote, "[I]t is unreasonable that any man should determine his own quarrel," 1 W. Blackstone, Commentaries on the Laws of England 91 citing Dr. Bonham's Case, 8 Rep. 114a (C.P. 1610); see also City of London v. Wood, 12 Mod. 669, 687 (1701)(Lord Holt)(invalidating fine for refusal to serve as sheriff recovered by the city in its own court of Mayor and Aldermen). See also Aetna Life Ins. Co. v. Lavoie, 475 U.S. 813 (1986)(overruling case where Chief Justice of Alabama Supreme Court wrongfully sat in judgment of case that would set precedent for his own pending case); Ward v. Village of Monroeville, 409 U.S. 57 (1972); Gibson v. Berryhill, 411 U.S. 564 (1973); Withrow v. Larkin, 421 U.S. 35 (1975); Cinderella Career and Finishing Schools, Inc. v. FTC, 425 F.2d 583 (D.C. Cir. 1970); American Cyanamid Co. v. FTC, 363 F.2d 757 (6th Cir. 1966); SCA Services, Inc. v. Morgan, 557 F.2d 110 (7th Cir.1977). 

Putting TRUMP in charge of monetary policy would perpetrate the sort of sordid conflict of interest that Anglo-American courts have been protecting us against for some 414 years. since at least 1610. Dr. Bonham's case, supra; Tumey v. Ohio, 273 U.S. 510, 522-24 (1927) (Taft, C.J.).  See also Laird v. Tatum, 409 U.S. 824, 828 (1972) (Rehnquist, J.), holding that it is well-settled that a government official is disqualified from ruling on a case "if [s]he either signs a pleading or brief" or "if he actively participated in any case. 

Fun fact: TRUMP's campaign manager  is SUSAN SUMMERALL WILES, a Florida Republican apparatchik. She wisely takes no position on this latest example of Trumpery, flummery, dupery and nincompoopery.   SUSAN WILES is a developer lobbyist, a political pro who helped elect TRUMP, Governor RONALD DION DeSANTIS and Senator RICHARD LYNN SCOTT,  WILES was once fired from the TRUMP campaign, and banished by Governor DeSANTIS after helping elect him, and her daughter was fired from a TRUMP White House  job for failing to pass security clearance background investigation scrutiny.  In St. Johns County, SUSAN SUMMERALL WILES is most noted here for her louche lobbyist career, attempting to foist slot machines off on St. Johns County through an illegal referendum.  Thanks to some wise Commissioners, we the People defeated her.  Kudos to former County Commissioner Jeb Smith, a farmer from Hastings, a good and decent man, who blocked her scheme in 2016.  (He's now the CEO of the Florida Farm Bureau Federation).

From Business Insider: 

Trump's team wants to restructure the Fed and let him have a say on interest rate decisions: WSJ

Donald Trump
Former President Donald Trump. (AP Photo/Morry Gash, file)
  • Some members of Trump's team want to restructure the Federal Reserve, the WSJ reported.
  • That could include allowing the president to have a direct say on interest rate decisions.
  • It would also allow him to get rid of Fed Chair Jerome Powell before his term ends in 2026.
  • The nation's central bank might look quite different if former President Donald Trump wins the upcoming election.

    The Wall Street Journal reported on Thursday night that members of Trump's team are creating plans that would restructure the Federal Reserve and allow Trump to influence the Fed's actions, according to people familiar — a move that would erode the Fed's independence from political entities.

    According to the Journal, the proposals would give Trump a say on interest-rate decisions, along with giving him the authority to oust Fed Chair Jerome Powell from his position before his term is up in 2026.

    Trump's advisors cautioned that the campaign has not confirmed these plans:

    "Let us be very specific here: unless a message is coming directly from President Trump or an authorized member of his campaign team, no aspect of future presidential staffing or policy announcements should be deemed official," Trump senior advisors Susie Wiles and Chris LaCivita told the Journal.

    The Journal also reported that the proposal would require the Fed to be subject to review by the Office of Management and Budget when issuing new rules — a process that other federal agencies have to undergo and would be another effort to diminish the central bank's independence on matters of banking regulation.

    Trump has previously been critical of Powell's handling of interest rates during the pandemic. To help the Fed achieve its 2% inflation target, the Federal Open Market Committee has hiked interest rates 11 consecutive times since March 2022. In September, the Fed paused the hikes and held rates steady since then, and Powell has emphasized the importance of being confident in economic data before cutting rates this year.

    Trump hasn't been on board with Powell's timing. In Februrary, Trump told Fox News that Powell is being "political" by potentially choosing to cut rates right around the time of the presidential election.

    "I think he's going to do something to probably help the Democrats, I think, if he lowers interest rates," Trump said, adding that "it looks to me like he's trying to lower interest rates for the sake of maybe getting people elected."

    Powell has long maintained that the Fed is not a political entity, saying during an April discussion that "our analysis is free from any personal or political bias, in service to the public."

    "We will not always get it right — no one does," he said. "But our decisions will always reflect our painstaking assessment of what is best for our economy in the medium and longer term — and nothing else."

    None of this can be done without Trump back in the White House

    The former president is the Republican Party's presumptive nominee, having handily defeated Florida Gov. Ron DeSantis, former South Carolina Gov. Nikki Haley, entrepreneur Vivek Ramaswamy, and others in the ongoing GOP primary election.

    Despite many polls showing Trump ahead of President Joe Biden in head-to-head matchups, the outcomes change when 3rd party candidates are introduced into the mix, especially Democrat-turned-Independent Robert F. Kennedy Jr.

    After losing to Biden in 2020, Trump has an unexpected advantage this time around: much more interest from young voters than before. Biden previously led Trump with the group by a nearly 20-point margin, but recent polls show that lead has fallen to just 1 to 2 percentage points.

    There is, however, a catch: younger voters are historically much less likely to vote than older ones, and several GOP-led state legislatures introduced bills in recent years restricting which forms of identification can be used at the voting booth, which could further reduce young voter turnout.

    Trump has also been hampered in recent weeks by his many legal troubles, such as the ongoing hush-money case in New York and his team's appeal to the Supreme Court on Thursday to give presidents sweeping immunity for their actions in office.

1 comment:

Lenny said...

Trump, who lied about his faith, would step on his own mother's face for a dime. The rotten SOB lied 40,000 times, wracked up 91 felonies, and grifted millions of intellectualy disabled people to a husk.