The advisors of former U.S. President Donald Trump are seeking unprecedented influence over the Federal Reserve, raising concerns about its autonomy and the future of Jerome Powell's chairmanship. According to reports from CNBC and The Wall Street Journal, a confidential 10-page document outlines a plan that could grant Trump unparalleled authority over the central bank's decision-making processes.

The proposed plan aims to consult Donald Trump on interest rate decisions and potentially install him as an "acting" central bank board member. Additionally, the Treasury Department could assume oversight of the Fed's bond-buying activities, introducing a new layer of executive control. These measures would mark a significant departure from the traditional independence of the Federal Reserve, raising concerns about the politicization of monetary policy.

The draft document also suggests that former President Donald Trump could even dismiss current Fed Chair Jerome Powell from his position, underscoring the extent of the proposed changes. This revelation comes at a time of heightened uncertainty in financial markets, particularly regarding the Federal Reserve's monetary policy stance, as investors grapple with concerns over a potential shift towards a more hawkish approach amid mounting inflationary pressures and tepid economic growth.

The proposed restructuring of the Federal Reserve could exacerbate market volatility and undermine confidence in the central bank's independence. While Trump campaign officials have downplayed the significance of the draft proposals, their potential implications for monetary policy decision-making cannot be overlooked. The Federal Reserve's spokesperson has declined to comment on the report, leaving many questions unanswered about the future direction of U.S. monetary policy.