Donald Trump's allies are devising a plan to allow the former US president to influence the Federal Reserve if he wins the upcoming presidential election. 

If Trump becomes the American president again and his allies' plan works, it could erode the Federal Reserve's independence. Here's what Americans need to know.

Donald Trump's Allies Plan To Erode Fed's Independence

According to CNBC's latest report, Donald Trump's political advisors are working on a new plan to give the GOP presidential candidate unprecedented influence over the Federal Reserve.

This effort could also include a provision that would make Donald Trump an acting central bank board member. Sources who saw the plan said it is highly secretive and part of a 10-page document suggesting Donald Trump would be consulted on interest rate decisions if he wins the U.S. presidential election.

The plan also recommends that the Treasury Department oversee the Fed's bond-buying activities, making the department an added check and balance.

Read Also: Donald Trump Urges His Followers to Support Truth Social as Its Parent Company's Stock Continues to Dive

Plan Could Allow Trump To Terminate Fed Chair Powell

Aside from the abovementioned proposals, Trump's allies are also contending that the presidential runner could remove Jerome Powell from the Federal Reserve office.

The 10-page document also stated that if Donald Trump wins the presidential election, Fed policy must align with the administration's goals.

In 2017, Donald Trump chose Jerome Powell as the Federal Reserve chair, allowing him to lead the U.S. central bank. However, in February, the former POTUS confirmed that he would not re-elect Powell.

He explained that this is because the Fed chief would lower interest rates just to help Joe Biden's prospects for re-election, as reported by Reuters.

Related Article: Donald Trump Pounces on Joe Biden's 'Bidenomics' Ahead of Hush Money Court Hearing