① US President Donald Trump hinted on Tuesday that he would seek to replace Federal Reserve governors appointed by former President Biden if their appointment letters were signed with an automatic signature pen; ② This move is the latest in Trump's attempt to gain control of the Federal Reserve, although it is widely believed that this approach is unlikely to ultimately succeed.
US President Donald Trump hinted on Tuesday that he would seek to replace Federal Reserve governors appointed by former President Joe Biden if their appointment letters were signed with an automatic pen.
This move is the latest in Trump's attempt to gain control of the Federal Reserve, although it is widely believed that this approach is unlikely to ultimately succeed.
In fact, Trump had previously threatened to repeal the executive orders signed by Biden using an automatic signature pen, but such threats had little effect beyond attracting some attention. It is foreseeable that if the White House attempts to overturn the Senate-backed appointments, the Federal Reserve governors involved will almost certainly launch legal challenges.
Even so, these remarks still mark the latest erosion of the Federal Reserve's independence by Trump.
“I’ve heard that those warrants may have been auto-signed by hand,” Trump said at a political rally in Pennsylvania on Tuesday. “If their warrants were signed that way—maybe I’m wrong, but we’ll check.”
Typically, after a Federal Reserve governor nominee is approved by the Senate, the president completes the appointment process by signing a letter of appointment to formally confirm their appointment to federal office.
Trump then implied that if he had used an automatic signature pen when appointing officials, he would have that person "kicked out of here." He asked Treasury Secretary Bessant, who accompanied him to the rally, to investigate the matter.
“Can you check?” Trump pressed. “Scott (Bessant), is that okay? Because I heard that those four people’s (letters of appointment) may have all been signed with an automatic signature pen, but it’s also possible that only two copies were signed—let’s check both copies, go check.”
Besides Cook, who had previously clashed with Trump, former US President Biden also appointed Vice Chairman Jefferson and Barr to the Federal Reserve Board of Governors during his presidency. Barr resigned as Vice Chairman for Supervision at the Federal Reserve earlier this year but remains a governor.
Another board member appointed by Biden, Kugler, resigned from the Federal Reserve Board of Governors in August, six months before his term was originally scheduled to expire.
In American history, automatic signature pens have been used during the terms of several presidents, with their earliest application dating back to the 1940s during Harry Truman's presidency.
In 2005, White House lawyers consulted the U.S. Department of Justice regarding whether the president could use an automatic signature pen to sign bills. The Department of Justice concluded that, based on the historical and legal meaning of the word "sign" in the early days of the United States, "a person can sign a document by instructing another person to affix their signature to it," and that "the president does not need to physically sign the bill to complete the signing."
Trump wants to completely overhaul the Federal Reserve Board?
Nevertheless, Trump's remarks once again demonstrate that, after months of disappointment with the pace of interest rate cuts, the US president, who took office earlier this year, is eager to exert influence over the Federal Reserve. Trump reiterated on Tuesday his commitment to pushing for changes to the Fed's board of governors, which is expected to announce on Wednesday whether it will cut interest rates at its December meeting.
Trump's vision for a major overhaul of the Federal Reserve includes appointing a new Fed chair after Powell's term ends next May. "We'll be considering several different candidates, but I already have a very good idea of who I want," Trump said en route to Pennsylvania.
Previously, Trump had repeatedly hinted that Kevin Hassett, the current director of the White House National Economic Council, might be his preferred candidate.
Earlier this year, Trump also attempted to fire Federal Reserve Governor Tim Cook, alleging mortgage fraud. Cook denied any wrongdoing and filed a lawsuit to block his removal; the Supreme Court stated last month that it would hear oral arguments in the case in January.
(Article source: CLS)
