Tesla CEO Elon Musk, who will be in charge of dismantling government regulations in the upcoming Trump administration, has agreed with a social media post advocating presidential pressure on the Federal Reserve.
According to CNBC on Saturday, Musk retweeted a post from Republican Senator Mike Lee of Utah on social media platform X, adding a “100 points” emoji. On the 8th, Lee referenced an article where Federal Reserve Chair Jerome Powell stated he would not resign if Trump demanded it. Lee argued, “The Executive Branch should be under the president’s direction. That’s how the Constitution was designed.” He added, “The Federal Reserve is one of many examples of how we’ve deviated from the Constitution in that regard. Yet another reason why we should end the Fed.”
CNBC analyzed Musk’s simple reaction, which indicates how the future Trump administration might pressure the Fed to maintain its independence.
Trump, who appointed Powell as Fed Chair during his first term in 2017, later opposed his interest rate hikes. In this year’s February interview, Trump accused Powell of being “political,” suggesting that if Powell lowers rates, it might be to help the Democratic Party. In his July acceptance speech for the Republican nomination, Trump promised to lower rates if elected. In August, he criticized Powell for the wrong timing of rate decisions and hinted at intervening in Fed decisions if he wins, stating, “I believe the President should at least have a voice at the Fed.”
In response, Democrats and President Joe Biden have criticized Trump for undermining the longstanding political norm of Fed independence.
Powell, whose term ends in 2026, recently faced questions about Trump after announcing a 0.25 percentage point rate cut on the 7th. When asked if he would resign at Trump’s request, Powell firmly replied, “No.”
Meanwhile, Musk, who reportedly donated $132 million to support Trump and Republican candidates in this year’s election, is set to play a significant role in the upcoming Trump administration. In a campaign rally in September, Trump announced plans to create a Government Efficiency Committee to streamline government operations and reduce regulations, with Musk as its chair. At a Trump rally held on October 27, Musk stated the committee’s goal is to cut at least $2 trillion from the budget.
