It is one thing to reform the Fed, completely another to see Trump first getting elected as President and then reforming the Fed.
Things have become so negative for Federal Reserve (and ECB and BoE and BoJ and SNB and..??) that it has become a punching bag of sorts. Ryan McMaken of Mises has this bit on whether Trump will reform the Fed or not. Even more interesting is that all President candidates have spoken about reforming the Fed. From an institution which was beyond reproach some years ago, Fed has become such a reproachable organisation:
In his comments, however, Trump has emphasized his (correct) position that the Fed is a highly political institution and that the old saw that an audit would reduce the Fed’s mythical “independence” is little more than a talking point for the Fed’s supporters. Moreover, Trump has accused the Fed of causing distortions in the economy through its quantitative easing program.
Does Trump understand the economics behind his anti-Fed positions? He probably doesn’t, although that’s pretty standard fare for politicians.
Perhaps the most reliable takeaway from this is how mainstream opposition to the Fed has become. With Trump, Rubio, Cruz, and Sanders all supporting an audit, it’s amazing how much things have changed from a decade ago when questioning the Fed in any manner was seen as political heresy.
With his positioning on this, Trump is likely trying to tap into populist opposition to the Fed’s nearly total lack of oversight and immense power. Back during the middle of Ron Paul’s 2012 presidential campaign, pollsters reported that more than 70 percent of those polled supported an audit of the Fed.
It indeed has been a very quick turnaround in political (mis)fortunes of Fed..