JPMorgan says Trump’s choice of the Federal Reserve “feeds an existential threat” as the independence of the central bank is targeted.

It can indicate the intention to amend the Federal Reserve Law and reduce the independence of politics, according to analysts in JPMorgan.

Thursday , President Donald Trump is called MiranThe Chairman of the Economic House of Economists at the White House, to fill a vacancy that Adriana Koger left, who stepped down before the end of her term in January.

While it is famous for a proposal, it was composed before joining the administration, which was called ” “Mar-A-Laggo Accord” To address the trade deficit of the United States, there is another paper he made in 2024 calling for Federal Reserve Reform It acquires more attention now.

On Friday note, the JPMORGAN analysts led by the chief economist Bruce Kasman highlighted the main proposals, such as giving power at the will to the US President to shoot at the members of the Board of Directors of the Federal Reserve and Banking Presidents, allowing the control of Congress in the Federal Reserve’s employment budget, and converting the responsibility of the Federal Reserve Bank on banks and financial markets into clothes.

Analysts wrote: “There is no doubt that the result of these reforms will be to increase the influence of the president on American monetary and organizational policy.”

These changes may require approval from Congress, and JPMorgan indicated that it is not clear support for such wide changes.

But what is clear is that Miran joins the Federal Reserve – was handed over with the reform agenda. In 2024, the Federal Reserve Bank was accused of suffering from “collective thinking” and the weapon of the mission, on the pretext that the changes in the Federal Reserve will actually help maintain its independence. Jpmorgan does not see this in this way.

Analysts said: “The main threat to the independence of the federal reserve is not in turn a political role that changes the results of the votes.” “Instead, the date feeds an existential threat as it appears that the administration aims to aim to permanently change the US monetary and regulatory authority.”

The White House did not immediately respond to a request for comment.

How can the Federal Reserve Defense play

Congress has power To amend the authority and mission of the central bank. WHARTON JEREMY SIEGEL professor reported this capabilities last month, when He told cnbc Powell may need to resign in order to maintain the independence of the Federal Reserve in the long run.

Its area: If the economy stumbles, Trump can refer to Powell as a “perfect scapegoat” and asks Congress to give him more strength on the federal reserve.

“This is a threat. Our federal reserves are not part of our constitution. It is a creature of the American Congress, which was established by the Federal Reserve Law of 1913. All its powers are transferred from Congress,” he said. “Congress has amended the Federal Reserve Act several times. He can do it again. It can give powers. Palmet may take off.”

Senator Bernie Moreno, R-OHIO, pointed to the willingness of last week to amend the Federal Reserve Law, including the interest he pays on banking reserves and its double delegation, although it believes in the independence of the central bank.

JPMorgan said that the Federal Reserve is still supporting in the Senate, as changes in the Federal Reserve Law will need 60 votes to overcome filbuster.

However, the Federal Reserve will take the threat to its independence seriously and actively protect it, which may mean “some residency” towards the White House and Congress demands, analysts have predicted.

They said: “While the exciting transformations are unexpected, the pressure next to the Federal Reserve Law can bias to politics with regulatory decisions in a direction that mixes the burdens.”

Tilt towards cash dilution will come amid uncompromising pressure from the White House to lower prices, which have been unchanged while pressing the federal reserve officials in the eye of Trump’s tariff.

Independence aims to isolate the Federal Reserve from this political pressure. But the independence of the federal reserve is a difficult concept, because it is largely derived from a mixture of laws, rules, agreements and informal traditions, Michael Boglis, senior economists in Wales VargoHe said luck In a previous interview.

He believes that Congress is unlikely to amend the Federal Reserve Law to allow a more clear impact from the White House.

This is because the Democrats will not be in line with it, and the Republicans may not get rid of the base of Filibuster in the Senate to erode the federal reserve independence immediately.

“The disposal of Filibuster is likely to open the door to tons, tons and tons of other policy discussions on many different issues, not only the Federal Reserve Law,” Pugliese explained. “Filibuster has grabbed as long as this is because both sides have reasons and cause it not changed. This may change one day, but I will be very surprised if the thing that changed is the federal reserve.”