Elon Musk's Fed audit proposal stirs Wall Street unease
Elon Musk has expressed a desire to conduct an audit of the Federal Reserve, which is causing concern on Wall Street. Musk is questioning the Fed's monetary policy decisions, drawing sharp criticism from experts.
Elon Musk, the richest person in the world, suggested the need for an audit of the Federal Reserve, causing a stir on Wall Street. According to "Rzeczpospolita", Musk has doubts about the Fed's decisions regarding monetary policy. His comments on the matter came after remarks from Donald Trump, who is calling for a loosening of control over the largest banks in the United States.
The idea of auditing the Fed is not new. Back in 2015, Republicans proposed making interest rate changes subject to a Congressional vote, but the bill did not pass. In 2024, Senators Chuck Grassley and Rand Paul made another attempt, but without success. Musk, supporting this idea, emphasizes that all government actions should be transparent.
Critics, including Roger Ferguson, a former vice chair of the Fed, stress that the independence of the Fed is crucial for the U.S. economy. Treasury Secretary Scott Bessent assures that there are no plans to interfere with the Fed's independence. Experts on Wall Street also express concerns that an audit could harm the U.S. economy, as pointed out by "Rzeczpospolita".
Political pressures on the Fed
The Fed Chair, Jerome Powell strongly opposes political interference in the central bank's operations. He emphasized that the Fed's independence is key to making decisions based on the condition of the U.S. economy. Despite the pressures, Powell does not intend to resign from his position.
During his presidential campaign, Donald Trump frequently criticized Powell for not quickly easing monetary policy. Trump believes that the president should have influence over the Fed's decisions, which he argues could bring economic benefits. His stance raises concerns about the central bank's independence.
Reactions to the proposals from Musk and Trump are mixed. Wall Street fears that political interference with the Fed could harm economic stability. Experts emphasize that the independence of the central bank is crucial for maintaining investor confidence and the stability of financial markets.
