Donald Trump’s visit to the Federal Reserve this Thursday will be one for the ages — perhaps the most consequential in American political history. The upcoming visit would be the first by a sitting president to the central bank in almost two decades. Though unprecedented, the White House has acknowledged this extraordinary action. It shines a light on Trump’s surging pressure campaign against Federal Reserve Chairman Jerome Powell.
The upcoming visit is therefore hugely important symbolic as well as substantive weight. Historically, American presidents have honored this independence. That confidence is necessary to help protect this important institution from the political fancies of any given class of elected representatives. Trump’s actions challenge this norm, as he has been vocal about his dissatisfaction with Powell’s decisions, particularly regarding interest rates.
Throughout his presidency and beyond, Trump has criticized Powell for refusing to lower interest rates, arguing that such actions would bolster economic growth. By bringing his criticism directly to Powell’s doorstep, Trump intensifies his stance against the central bank’s policies. Perhaps this visit will help begin important conversations about the role of the presidency vis-a-vis our nation’s monetary policy. In the past, this dynamic would have enforced a respect line.
Perhaps the most important issue raised by Trump’s visit is what it portends for future presidential interaction with the Federal Reserve. As the central bank operates both in law and practice free from direct political influence, Trump’s approach may set a precedent that could alter how future presidents engage with this critical institution.