Trump vs. The Fed: Who Should Control America’s Money? - Chamath Palihapitiya

Fed Independence & Political Influence - The financial industry suggests the Federal Reserve is not independent and its appointees are partisan, similar to other government branches [2][3][4][14][17] - The industry questions whether a sitting president should have the authority to remove a Fed governor if their views are misaligned with the electorate's wishes [4] - The industry proposes revisiting the notion of the Fed's independence, considering that many of its functions could be better handled by the Treasury or other entities [17] - The industry acknowledges the 14-year terms for Fed governors are designed to insulate them from political cycles, promoting institutional resilience [17][18][21] Monetary Policy & Data Reliability - The financial sector expresses concern over the Fed's monetary policy decisions, which are based on potentially inaccurate data [6][7][11] - The industry suggests that capital markets and free markets are more effective at achieving price stability than the Fed [8] - The industry highlights the potential for real-time pricing oracles, utilizing blockchain-published economic data, to improve market efficiency [11][12][13] Fed's Role & Responsibilities - The industry questions whether the Fed should continue to act as a lender of last resort, suggesting the Treasury could perform this function more effectively [8] - The industry generally agrees that the Fed can continue its banking supervision and regulation, as well as its role as a payment system and clearing house [9][10] - The industry emphasizes the importance of considering the long-term costs of capital and the US's ability to service its debt when making monetary policy decisions [19][20]