Trump Seeks Federal Reserve Control to Boost Stock Market

Donald Trump is pursuing a strategy of aggressive monetary easing to inflate the stock market in anticipation of the 2026 midterm elections. A central part of this effort involves consolidating executive control over the Federal Reserve System. The president is expected to replace Chair Jerome Powell, whose term expires in May 2026, with a loyalist candidate.

To further this goal, Federal Reserve Board nominee Stephen Miran has proposed a third mandate for the central bank. This mandate would require the bank to moderate long-term interest rates. Critics argue such a move would transform the Federal Reserve into a political tool designed to finance federal spending through the printing of money.

The Federal Reserve has already entered a new interest rate cutting cycle. In December, the bank shifted from shrinking its balance sheet to expanding it by purchasing $40 billion in Treasuries. Analysts warn that these policy shifts risk accelerating currency debasement and eroding overall purchasing power.