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Trump’s Economic Era

foreign central banks. In 2011, the Fed lent out $16
trillion without congressional approval. President
Trump is committed to reigning in the excesses of the
Fed’s independence and moderating its control over our
nation’s money supply. Contrary to recent Fed policies,
President Trump favors letting the market determine
interest rates.

CONFLICTING POLICIES
Keynesians believe that the Fed is necessary to
manage the country’s money supply, and Austrians
suspect that it has caused booms and busts by misallo-
cating resources. Keynesians believe that policymakers
can make sound policies with accurate predictions, but
for Austrians life is unpredictable. Keynesians favor
discretionary policies based on the situation, and
Austrians believe in clearly defined rules.
Keynesians believe that low-interest rates will
encourage more borrowing and, therefore, increase
aggregate demand. Austrians are more concerned that
the low-interest rates will adversely impact savings,
instead market forces should determine interest rates.
Keynesians are satisfied with the bankers controlling
our money, Austrians favor government control over
banking. President Trump tends to favor Austrian
economic policies.

QUANTITATIVE EASING
The federal government borrows money by selling
securities, bonds, to the Federal Reserve and the Fed
credits the federal government’s account by pushing a

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