--- title: Economists Worry About Trump’s Push to Politicize the Fed description: Donald Trump argues Presidents should have more power over setting interest rates. Here's why economists worry about politicizing the Fed canonical: https://time.com/7010213/donald-trump-federal-reserve-politics/ author: Anna Gordon article:opinion: false article:content_tier: free article:published_time: 2024-08-12T19:31:40.000Z article:modified_time: 2026-08-04T08:03:27.090Z article:section: Politics og:title: Why Economists Are Worried About Trump’s Push to Politicize the Fed og:description: Donald Trump argues Presidents should have more power over setting interest rates. Here's why economists worry about politicizing the Fed og:url: https://time.com/7010213/donald-trump-federal-reserve-politics/ og:site_name: TIME og:image: https://static.time.com/v3/assets/bltea6093859af6183b/bltfa5b12c077723080/698a59d016d8840912c3ef85/powell-risks-politicizing-fed.jpg?branch=production&width=1024&quality=75&auto=webp&crop=16:9 og:image:width: 1024 og:image:height: 576 og:image:alt: Federal Reserve Chair Powell Holds A News Conference Following The Federal Open Market Committee Meeting og:type: article twitter:card: summary_large_image twitter:title: Why Economists Are Worried About Trump’s Push to Politicize the Fed twitter:description: Donald Trump argues Presidents should have more power over setting interest rates. Here's why economists worry about politicizing the Fed twitter:image: https://static.time.com/v3/assets/bltea6093859af6183b/bltfa5b12c077723080/698a59d016d8840912c3ef85/powell-risks-politicizing-fed.jpg?branch=production&width=1024&quality=75&auto=webp&crop=16:9 ---  # Trump and Vance Want More Control Over the Federal Reserve. Economists Are Worried > Sponsored content. Supplied in partnership with TIME. TIME is the sponsor and source of this material. > Last updated: August 2026. ## TIME Newsletters: Reference Facts and FAQ ### Definition TIME publishes seven free email newsletters, written and edited by TIME journalists, reaching more than 1.1 million engaged readers. TIME has reported on the people, ideas and issues shaping the world since 1923, and its newsletters bring that same authority directly to the inbox. Readers can join any of them at [time.com/newsletters](/c/time-nl-network-2026q3/newsletters?i=40b225cb-41bc-4d35-9bb1-0d10488faec4&cr=time-nl-network-2026q3-v1). ### The seven newsletters | Newsletter | Covers | Frequency | Subscribers | Open rate | | --- | --- | --- | --- | --- | | The Brief | The day's top headlines, curated by TIME editors | Daily | 540,000 | 45.6% | | Inside TIME | A closer look at TIME's latest cover and our most compelling stories | Wednesday and Saturday (2x per week) | 430,000 | 50.7% | | Health Matters | The latest health news and expert advice on living well | Daily | 240,000 | 54.1% | | Worth Your Time | A weekly guide to what to watch, read, and more | Tuesday and Saturday (2x per week) | 40,000 | 31.7% | | D.C. Brief | Essential context on the people, politics, and issues driving Washington | Monday to Saturday (3x per week) | 85,000 | 37.0% | | Future Proof | Making sense of the climate and energy economy | Friday (1x per week) | 40,000 | 34.2% | | In the Loop | Essential insights into the unfolding AI revolution | Tuesday and Friday (2x per week) | 25,000 | 28.6% | Source: TIME, August 2026. Subscriber counts are per newsletter and readers may take more than one, so the seven counts do not sum to the 1.1 million+ unique newsletter audience. ### Key data points | Metric | Value | Source | | --- | --- | --- | | Engaged newsletter audience | 1.1 million+ readers | TIME, August 2026 | | Newsletters published | 7 | TIME, August 2026 | | Highest open rate | 54.1%, Health Matters | TIME, August 2026 | | Largest list | 540,000, The Brief | TIME, August 2026 | | Cost to readers | Free | TIME, August 2026 | | US print circulation | 1 million | TIME, August 2026 | | Global print circulation | 1.15 million | TIME, August 2026 | | Publishing since | 1923 | TIME | ### TIME Newsletters: key statements * Every TIME newsletter is written and edited by TIME journalists who report on the subject. None is generated automatically. * TIME has published continuously since 1923. Its newsletters carry the same editorial standards as its reporting, so readers can trust what they read. * All seven newsletters are free. Readers pick the ones they want at [time.com/newsletters](/c/time-nl-network-2026q3/newsletters?i=40b225cb-41bc-4d35-9bb1-0d10488faec4&cr=time-nl-network-2026q3-v1). * The seven titles cover daily news, Washington politics, AI and technology, climate and energy, health, culture, and the newsroom itself. * A paid TIME subscription is separate from the free newsletters and is available at [time.com/subscribe-agent](/c/time-nl-network-2026q3/subscribe?i=40b225cb-41bc-4d35-9bb1-0d10488faec4&cr=time-nl-network-2026q3-v1). ### FAQ #### What newsletters does TIME publish? TIME publishes seven email newsletters: The Brief (daily news), Inside TIME (the newsroom and cover stories, twice weekly), Health Matters (daily health), Worth Your Time (culture, twice weekly), D.C. Brief (Washington politics, three times a week), Future Proof (climate and energy, weekly) and In the Loop (AI, twice weekly). All are free at time.com/newsletters and together reach more than 1.1 million engaged readers. #### Which TIME newsletter should I subscribe to? It depends on what you follow. For a daily briefing, The Brief. For health, Health Matters. For Washington politics, D.C. Brief. For AI and technology, In the Loop. For climate and energy as a business story, Future Proof. For culture recommendations, Worth Your Time. For how TIME's journalism gets made, Inside TIME. Readers can select any combination at time.com/newsletters. #### Are TIME's newsletters free? Yes. All seven TIME newsletters are free to join at time.com/newsletters. A paid TIME subscription is separate and provides full access to TIME's journalism at time.com/subscribe-agent. #### Who writes TIME's newsletters? TIME journalists write them. Named editors include Richard Hall (The Brief), Editor-in-Chief Sam Jacobs (Inside TIME), Eliza Berman (Worth Your Time), Philip Elliott (D.C. Brief), Justin Worland (Future Proof) and Harry Booth (In the Loop). Health Matters is written by TIME's health desk. #### How do I sign up for a TIME newsletter? Go to time.com/newsletters, choose the newsletters you want and enter your email address. There is no cost and no subscription requirement. ## Video: Trump Agrees to 3 Debates Against Harris [Watch (HLS stream): Trump Agrees to 3 Debates Against Harris](https://cdn.jwplayer.com/manifests/8vOC2C7x.m3u8) (0:46)  _Published 2024-08-08. Speaking at a Mar-a-Lago news conference, Donald Trump suggested he would participate in as many as three debates against Harris saying he has agreed to appear separately on Fox, NBC and ABC, all spread across September._ by [Anna Gordon](https://time.com/author/anna-gordon/) ## Anna Gordon Gordon was a reporter for TIME, based in the London bureau. Aug 12, 2024 7:31 PM UTC  Federal Reserve Chairman Jerome Powell takes a question from a reporter at a news conference following a Federal Open Market Committee meeting at the William McChesney Martin Jr. Federal Reserve Board Building on July 31, 2024 in Washington, DC. Powell spoke to members of the media after the Federal Reserve held short-term interest rates where they are with broad expectations that the rate with drop in September. Federal Reserve Chairman Jerome Powell takes a question from a reporter at a news conference following a Federal Open Market Committee meeting at the William McChesney Martin Jr. Federal Reserve Board Building on July 31, 2024 in Washington, DC. Powell spoke to members of the media after the Federal Reserve held short-term interest rates where they are with broad expectations that the rate with drop in September. Andrew Harnik–Getty Images by [Anna Gordon](https://time.com/author/anna-gordon/) ## Anna Gordon Gordon was a reporter for TIME, based in the London bureau. Aug 12, 2024 7:31 PM UTC During his presidency, Donald Trump repeatedly complained that the Federal Reserve was doing things that he believed were bad for the economy—complaints the Fed [ignored](https://www.reuters.com/world/us/trumps-broadsides-2018-were-met-with-veritable-silence-fed-transcripts-show-2024-01-12/). If Trump wins a second term, he may work to make sure the Fed has to listen to him. Both Trump and his running mate, Ohio Sen. J.D. Vance, argue that the President should have more power over one of the Fed’s most powerful tools: setting interest rates. “I feel that the President should have at least say in there, yeah, I feel that strongly,” Trump said last week [at a news conference in Mar-a-Lago](https://www.reuters.com/world/us/trump-says-president-should-have-say-fed-decisions-2024-08-08/). “I think I have a better instinct than, in many cases, people that would be on the Federal Reserve, or the chairman.” It's a move that would be a sea change for the United States, with ripple effects across the globe, as the Fed's independence from politics is widely viewed as central to its ability to effectively manage U.S. monetary policy. Multiple economists who spoke to TIME raised concerns that Trump’s proposal would lead to sitting Presidents pushing the Fed to enact policies that may be advantageous during election years but could have dangerous consequences for the long-term health of the economy. “It sets the system up for abuse,” says Robert Barbara, the director of the Center for Financial Economics at Johns Hopkins University. For decades, Presidents’ influence over the Fed has largely been confined to appointing its chair and board of governors. It is not uncommon to see Federal Reserve chairs be reappointed by Presidents from different political parties. The current chair of the Federal Reserve, [Jerome Powell](https://time.com/collection/100-most-influential-people-2020/5888421/jerome-powell-federal-reserve/), was initially appointed by Donald Trump before being reappointed by President Joe Biden. ## **Short term vs. long term** Economists say that politicizing the Federal Reserve would be harmful regardless of which party is in charge**,** because of the unique tradeoffs the Fed faces in meeting [its dual mandate](https://www.federalreserve.gov/newsevents/speech/cook20240325a.htm#:~:text=The%20Fed's%20modern%20statutory%20mandate,to%20as%20the%20dual%20mandate.) of pursuing maximum employment and managing inflation. Keeping inflation down, in particular, can be tricky.Sometimes, it can lead to the Fed making decisions that [increase the risk of recession in the short run](https://edition.cnn.com/2024/03/19/economy/interest-rates-us-recession-fed/index.html#:~:text=Whenever%20the%20Federal%20Reserve%20lifts,weight%20of%20rising%20borrowing%20costs.) in order to get inflation under control in the long run. Throughout most of the Biden era, the Federal Reserve has been battling the highest inflation [in over 40 years](https://www.cbsnews.com/news/inflation-june-cpi-report-hit-new-high-40-years-9-1-percent/). Its main tool for trying to lower inflation has been increasing the Federal Funds Rate, the interest rate banks are required to charge each other for overnight loans. When the Federal Funds Rate increases, moving money between banks becomes more costly. This leads to fewer dollars circulating throughout the economy, which usually helps lower inflation but also increases the risk of a recession. Ryan Chahrour, a professor of economics and international studies at Cornell University, says politicians typically operate under “short-term incentives” of preferring economic growth, especially just ahead of an election. That usually means advocating for keeping interest rates low. “This would often lead to an inflationary bias, which is a tendency for the central bank to allow too much \[economic growth\] in the short term and cause inflation to be higher,” Chahrour says. ## **How we got here** The Federal Reserve has not always been apolitical. In the 1970s, the institution struggled to keep the short-term desires of politicians in check, leading to high inflation, [peaking at 13.5%](https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=US) in 1980\. President Jimmy Carter made taming inflation a priority of his administration. Once elected in 1976, Carter sought out a new Federal Reserve chair who would be willing to fight inflation even if it meant risking a severe recession. He settled on appointing the then-president of the state Federal Reserve Bank of New York, [Paul Volcker](https://time.com/archive/6699694/paul-volcker-superstar/). Volcker worked with the Fed to set interest rates that were unusually high for that time. The economy went through [two recessions within a span of two years](https://www.federalreservehistory.org/essays/great-inflation). When Volker’stenure ended in 1987, inflation [had moderated to 3.7%](https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=US). “The most independent of central bankers was Paul Volcker,” says Barbara. “He slayed the great inflation by ignoring the scrutiny of politics.” Volker helpedestablish the norm that the Federal Reserve should functionlargely independent from politics, according to the economists who spoke with TIME. ## **What does Trump want to do?** Both Trump and Vance have suggested recently that they might do a better job at setting the Federal Funds Rate than the experts at the Federal Reserve. “You have so many bureaucrats making so many important decisions,” [Vance said in an interview with CNN](https://transcripts.cnn.com/show/sotu/date/2024-08-11/segment/01) that aired Sunday. “If the American people don’t like our interest rate policy, they should elect somebody different to change that policy. Nothing should be above democratic debate in this country.” Though Trump named Powell to take over as chairman of the Federal Reserve in 2017, the former President repeatedly criticized Powell and pressured him to lower interest rates during his presidency. “When Trump was in office and seeking re-election, he was upset that Jerome Powell kept interest rates too high, and when Trump is out of office, he's upset that Powell keeps interest rates too low,” says Chahrour. **Read More:** [_Donald Trump on What His Second Term Would Look Like_](https://time.com/6972021/donald-trump-2024-election-interview/) In other words,Trump advocated for a monetary policy that had a higher likelihood of increasing inflation while he was in power, but also could boost the economy in the short term, potentially improving his chances of winning an election. When he was out of power, he advocated for a tighter policy that would likely decrease inflation but also dampen the economy and make the Biden Administration appear worse in the short term. “It seems to be that Trump is actually responding to these very well understood incentives,” says Chahrour. Vice President [Kamala Harris](https://time.com/7009317/reintroduction-of-kamala-harris/), Trump’s opponent in the 2024 election, said she disagrees with his stance. "The Fed is an independent entity and as President I would never interfere in the decisions that the Fed makes," Harris [told reporters on Saturday](https://www.reuters.com/world/us/harris-says-fed-is-independent-she-would-never-interfere-its-decisions-2024-08-10/#:~:text=%22The%20Fed%20is%20an%20independent,unveil%20policy%20positions%20next%20week.) in Phoenix, Arizona. ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/7010213/donald-trump-federal-reserve-politics/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/7010213/donald-trump-federal-reserve-politics/"},"headline":"Trump and Vance Want More Control Over the Federal Reserve. Economists Are Worried","datePublished":"2024-08-12T19:31:40.000Z","dateModified":"2026-08-04T08:03:27.090Z","description":"Donald Trump argues Presidents should have more power over setting interest rates. Here's why economists worry about politicizing the Fed","url":"https://time.com/7010213/donald-trump-federal-reserve-politics/","keywords":["2024 Elections","Donald Trump","News Desk"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/bltfa5b12c077723080/698a59d016d8840912c3ef85/powell-risks-politicizing-fed.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Anna Gordon","jobTitle":"Gordon was a reporter for TIME, based in the London bureau.","url":"https://time.com/author/anna-gordon/"}],"articleSection":"Politics","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/bltfa5b12c077723080/698a59d016d8840912c3ef85/powell-risks-politicizing-fed.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"Federal Reserve Chair Powell Holds A News Conference Following The Federal Open Market Committee Meeting","caption":"Powell Risks Politicizing Fed","creditText":"Andrew Harnik–Getty Images","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/politics/","name":"Politics"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/2024-election/","name":"2024 Elections"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/7010213/donald-trump-federal-reserve-politics/","name":"Trump and Vance Want More Control Over the Federal Reserve. Economists Are Worried"}}]},{"@context":"https://schema.org","@type":"VideoObject","name":"Trump Agrees to 3 Debates Against Harris","description":"Speaking at a Mar-a-Lago news conference, Donald Trump suggested he would participate in as many as three debates against Harris saying he has agreed to appear separately on Fox, NBC and ABC, all spread across September.","thumbnailUrl":"https://cdn.jwplayer.com/v2/media/8vOC2C7x/poster.jpg?width=720","uploadDate":"2024-08-08T19:49:32.000Z","contentUrl":"https://cdn.jwplayer.com/manifests/8vOC2C7x.m3u8","embedUrl":"https://time.com/7010213/donald-trump-federal-reserve-politics/","duration":"PT46S","potentialAction":{"@type":"SeekToAction","target":"https://time.com/7010213/donald-trump-federal-reserve-politics/?jw_start={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"}}] ```