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DONALD TRUMP’S antipathy toward the Federal Reserve may lead to radical reforms at the central bank, the Wall Street Journal reported this weekend.
TRUMP ALLIES are quietly drafting proposals that would attempt to erode the Federal Reserve’s independence if the former president wins a second term, according to the Journal’s Fed watcher, Nick Timiraos. Among Trump’s advisers, there’s a deep divide over how aggressively to challenge the central bank’s authority.
THE TRUMP ALLIES apparently believe that he should be consulted on interest-rate decisions. Others want to oust Jerome Powell after the election, although he might stay as a governor.
POWELL HAS A FULL PLATE plate this week, as the Federal Open Market Committee meets amid criticism that the Fed has not suppressed inflation and may have to keep interest rates high for months to come.
ANOTHER WSJ PIECE THIS WEEKEND speculated that the Fed may be willing to accept somewhat higher interest rates. These two stories could generate howls from the markets, which may have to conclude that rates will stay higher for longer than investors anticipated just a few months ago.
ELECTION MOMENTUM SHIFT: Just as Joe Biden’s polling numbers started to improve, he has to deal with a full-fledged insurrection on college campuses. His approval rating among 18-to-29-year-olds stands at 36%, a drop of three percentage points since last fall (39%) and five percentage points since last spring (41%.), according to a Harvard University poll.
THE POLL also found that nearly half of young Americans (48%) have felt unsafe in the past month, with 40% worried about falling victim to gun violence.
WE SUSPECT BIDEN’S RATINGS among young people will get worse before they get better, as protests continue into the summer. For old folks, this could look eerily similar to 1968, when protests persisted well into the summer, propelling Richard Nixon — “a law and order” candidate — to the presidency.
DEMOCRATS WE’VE TALKED WITH believe Biden’s prospects could dip further if Israel attacks Rafah, with more civilian casualties. These Democrats are dismayed because Biden’s polls had started to improve earlier in April as the president won a huge package of aid, but more aid to Israel simply inflamed the protests.
TRUMP, MEANWHILE, has a widening lead, and won a major victory this weekend: He had a cordial meeting with Florida Gov. Ron DeSantis, who pledged to campaign and raise money for the ex-president. As Democrats fight charges of anti-Semitism, Florida now seems like a lock for the Trump ticket.
Related: An Ominous Signal in Pennsylvania
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