Part 7/9:
Historically, the Fed functions within a framework that separates monetary policy from political sway. Should Trump attempt to reduce this independence, opposition is likely to arise from various sectors, including the Senate and broader economic stakeholders. Tension may escalate, placing Trump in the position of a fiscal aggressor willing to push against the institution's autonomy.
Discussions have surfaced regarding potential changes to the Fed's operational structure, such as mandating consultations with the president on interest rate decisions. These changes could blur the lines of independence and cushion Trump's ability to enact expansive fiscal policy without immediate consequences.