‘#EndtheFed’: Elon Musk Endorses Plan to Let Presidents Meddle with Federal Reserve after Trump Election Win
By Okafor Joseph Afam
November 9, 2024
Tesla and SpaceX CEO Elon Musk, a key supporter of President-elect Donald Trump, has voiced his approval for the controversial proposal of granting presidents greater influence over Federal Reserve policies.
The endorsement came on Friday when Musk responded to a social media post by Senator Mike Lee, a Republican from Utah. Lee’s post suggested that the Federal Reserve should fall under direct presidential authority, punctuating his statement with the hashtag “#EndtheFed.” Musk, in a brief yet impactful gesture, responded with the “100” emoji, signaling his full agreement.
Although concise, Musk’s endorsement underscores a potential push toward reshaping the Fed’s autonomy, a move that may become a key aspect of Trump’s incoming administration. Historically, the Federal Reserve has operated independently to shield its monetary decisions — including interest rate adjustments — from political influence. This structure is designed to enable a long-term economic focus rather than short-term political aims.
However, the tradition of Fed independence was strained during Trump’s first term, as he openly criticized Fed Chair Jerome Powell, at times pushing for policies favorable to his administration. The recent campaign reignited these debates, with Trump hinting at a possible shift in the Fed’s autonomy. In August, he remarked during a press event at his Mar-a-Lago resort, “I feel the president should have at least [a] say in there. I think that in my case, I made a lot of money, I was very successful, and I think I have a better instinct than, in many cases, people that would be on the Federal Reserve or the chairman.”
The statement from Powell that he would not step down if asked by Trump adds tension to the dynamics between the Fed and the White House, which may come to define Trump’s second term. While Powell maintains that the Fed should act in the nation’s best long-term interest, the question of presidential influence remains a contentious issue, especially with high-profile endorsements like Musk’s supporting the notion of greater executive involvement.
With Trump set to take office again, financial markets and political analysts alike are watching closely, as any shift in the Fed’s structure could have profound implications on both economic policy and the precedent of central bank independence in the United States.
