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Elon Musk and GOP Leaders Push for Federal Reserve Overhaul as Trump Prepares for New Term

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As President-elect Donald Trump readies for a return to the White House, speculation mounts about possible changes to the Federal Reserve’s role and independence. Elon Musk, a prominent Trump supporter, recently backed a call by Republican Senator Mike Lee to abolish the Fed. Lee argued that the Federal Reserve deviates from the Constitution’s original intent, advocating instead for executive control over monetary policy.

Though Trump has yet to make a definitive stance on dissolving the Fed, he has campaigned for revising the institution’s policies, particularly aiming to lower interest rates. On the campaign trail, Trump proposed that Fed officials consult with him on interest rates—a shift that could potentially undermine the Fed’s long-standing independence, which allows it to make decisions focused on long-term economic stability rather than political demands. Trump has previously criticized Fed Chair Jerome Powell, whom he blamed for maintaining high rates during his first term.

The notion of eliminating the Federal Reserve isn’t new. Republican legislators like Senator Lee and Representative Thomas Massie introduced bills this year aimed at dismantling the Fed and transferring its duties to the Treasury Department. However, Congress has historically guaranteed the Fed’s ability to operate as an independent body, empowered to make policy decisions without political interference, a standard reinforced by recent Supreme Court decisions on similar independent agencies. Under the Federal Reserve Act, the Fed Chair can only be removed for “cause,” a legal standard meant to protect against arbitrary dismissal.

Trump’s upcoming term may be the first true test of this independence. Republicans currently control the Senate, and Trump’s influence on the Supreme Court—having appointed three of the six conservative justices—could lend credibility to any attempt to challenge the Fed’s autonomy. However, the high court has recently upheld the independence of other regulatory agencies, suggesting it may resist radical changes to the Federal Reserve.

 

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

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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.

 

Elon Musk Joins Trump’s Call with Ukraine’s Zelenskiy After Election Win, Reports Say

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Reports reveal that when Ukrainian President Volodymyr Zelenskiy called Donald Trump to congratulate him on his recent presidential election victory, Tesla and SpaceX CEO Elon Musk joined the conversation. The call, lasting around 25 minutes on Wednesday, featured Trump expressing his support for Ukraine, though without specific details, while Musk committed to continuing Starlink satellite support, a crucial resource for Ukraine’s defense network, according to Axios.

The conversation unfolded as Zelenskiy praised Starlink’s role in maintaining internet services amid the war. Trump, reportedly at Mar-a-Lago with Musk, introduced the tech mogul to Zelenskiy, according to the Washington Post. Musk’s role in providing satellite communication through his SpaceX-owned Starlink has been vital to Ukraine’s defense operations, although Musk’s statements on the conflict have occasionally strained relations with Kyiv.

In response to the call, Zelenskiy emphasized the importance of ongoing U.S. support, sharing on the platform X (formerly Twitter) that he and Trump agreed to continue discussions. “Strong and unwavering U.S. leadership is vital for the world and for a just peace,” he added, underscoring the necessity of American involvement in Ukraine’s battle against Russian aggression.

Reports also highlighted Musk’s financial support of Trump’s campaign and Trump’s indication of offering Musk a role in promoting government efficiency if elected. Musk has not publicly commented on the call, and the Trump campaign refrained from commenting on private discussions.