Musk supports idea of ​​’#EndOFed’ after Powell says he won’t resign early

Tesla CEO Elon Musk has expressed support for an idea that would give presidents more control over the Federal Reserve, which could threaten its independence.

On his social media platform the president’s direction. This is how the Constitution was designed. The Federal Reserve is one of many examples of how we have deviated from the Constitution in this regard. All the more reason why we must #EndOfFed.”

Lee’s post included a screenshot of a news story about Fed Chairman Jerome Powell saying he would not resign if asked.

Tesla did not immediately respond to a request for comment. A Fed spokesman declined to comment.

Economists have said the Fed’s independence is key to setting monetary policy without political pressure that could weaken its credibility in fighting inflation.

During a press conference earlier on Thursday, after the Fed cut rates, Powell was asked if he would resign if President-elect Donald Trump demanded it, and Powell simply responded “no.” He was later asked if he thought a president had the authority to fire or demote a Fed chairman or other Fed official in a leadership role, and Powell said, “It’s not allowed by law.”

That could set up Trump’s first major showdown over his sweeping plans for the economy. During his first term as president, Trump nominated Powell as Fed chairman in 2018, but later clashed with Powell when the Fed chief opposed demands for looser monetary policy. Earlier this year, Trump said that as president he should at least have a say in interest rates.

While the Fed is expected to cut rates again in December, some analysts said any additional signs that inflation is persistent or that the economy is still growing robustly could prompt policymakers to pause further cuts.

Meanwhile, Trump wants Musk to lead efforts to improve government efficiency, and the billionaire CEO has said $2 trillion could be eliminated from federal spending.

On Saturday (9), Musk said on X that “The unelected and unconstitutional federal bureaucracy currently has more power than the presidency, the legislature or the judiciary! This needs to change.”

The tech mogul became a key supporter in the campaign and established a presence after the election.

He participated in a call with Trump and Ukrainian President Volodymyr Zelensky, who reached out Wednesday after the election to congratulate Trump.

Sources told Musk he would continue supporting Ukraine through SpaceX’s Starlink satellites, which have been helping troops communicate. Musk also participated in a call between Trump and Turkish President Recep Tayyip Erdoğan.