Renowned CEO of Tesla and SpaceX, Elon Musk, has been an ardent supporter of current President Donald Trump, especially during his presidential campaign in 2024.
Following Trump’s successful election as the 47th President of the United States, Musk publicly endorsed the idea of granting the president a more direct role in shaping Federal Reserve policies.
Senator Mike Lee’s Stance on Limiting Federal Reserve Authority
This discussion stemmed from a reaction to a recent statement by Senator Mike Lee, R-Utah, who called for the Federal Reserve to be subject to direct oversight by the president.
Musk demonstrated his backing for this viewpoint the next day by using a simple “100” emoji, commonly used to signify complete agreement.
For those unfamiliar, Senator Lee concluded his tweet with the hashtag #EndtheFed, advocating for a significant change in U.S. monetary policy.
He expressed that,
“The Executive Branch should be answerable to the president. That’s how the Constitution was intended. The Federal Reserve exemplifies our departure from constitutional principles. This is another reason to bring an end to the Fed.”
How Did This Situation Arise?
Senator Lee was prompted to share his views after Federal Reserve Chair Jerome Powell refused to resign even if requested by incoming President Trump, a decision that Lee perceived as indicative of a system out of control. Musk’s endorsement of Lee’s standpoint on social media led to further discussions on the role of the Federal Reserve in U.S. economic governance.
In response to the unfolding events, a user named Truth Justice emphasized,
“The eradication of governmental corruption.”
Tensions escalated when Fed Chair Jerome Powell reiterated his intention not to step down if approached by President-elect Trump, underscoring a growing rift between the central bank and the White House.
What’s the Latest Development?
Traditionally, the Federal Reserve has operated autonomously, making decisions based solely on economic factors, but during his initial term, Trump frequently criticized Powell’s monetary policies.
During the 2024 campaign, Trump signified an interest in having more influence over the Fed’s decisions if re-elected. In August, during a press briefing at his Mar-a-Lago residence in Florida, Trump stated,
“I believe the president should have a degree of influence in that arena.”
Similarly, Musk echoed a similar sentiment in a recent tweet, arguing,
“The unelected and unconstitutional Federal bureaucracy currently wields more authority than the executive, legislative, or judicial branches! This scenario needs to be rectified.”
Why Bitcoin could be the Solution?
With the U.S. national debt surpassing $35 trillion, Bitcoin [BTC] is emerging as a potential safeguard against inflation resulting from extensive money supply. Notable figures like Florida CFO Jimmy Patronis and Senator Cynthia Lummis are advocating for BTC investments to hedge against loss of purchasing power.
Moreover, Trump has proposed utilizing Bitcoin to manage the national debt, showcasing its increasing relevance in U.S. economic strategies. Consequently, as debates intensify regarding Bitcoin’s financial implications, its role as an inflation hedge is gaining significant traction.
An observer put it aptly when stating,