Elon Musk Endorses Plan for Presidential Influence Over Federal Reserve Following Trump’s Election Win

Elon Musk, CEO of Tesla and SpaceX, has publicly supported the notion of allowing presidents to influence the Federal Reserve’s policy decisions, following Donald Trump’s recent presidential election victory. Musk’s endorsement came on Friday in response to a social media post by Republican Senator Mike Lee of Utah, who proposed the Fed should be under the president’s control and used the hashtag “#EndtheFed.” Musk replied to the post with a “100” emoji, signaling his agreement.

The exchange highlights a renewed interest in challenging the Federal Reserve’s traditional independence. This move aligns with Trump’s past stance on the issue; during his first presidential term, he openly criticized Fed Chair Jerome Powell and suggested that the president should have a voice in the central bank’s monetary policies. Trump, who frequently expressed frustration with Fed decisions, argued he had “better instincts” regarding economic policy than some Federal Reserve officials, given his business success.

Federal Reserve independence is a principle established to enable monetary policy decisions, like setting interest rates, based on economic projections rather than political motivations. This separation is intended to promote economic stability, shielding the central bank from political cycles. Nevertheless, Trump has repeatedly voiced his preference for executive influence over the Fed, particularly during his 2024 campaign, asserting in August that presidential input would benefit the economy.

On Thursday, in the wake of Trump’s election victory, Powell emphasized his commitment to maintaining Fed independence, stating he would not step down if asked by the president. Powell’s stance suggests that the Trump administration’s potential pressure on the Fed could reignite tensions over the independence of U.S. monetary policy.