Posted: November 11, 2024

• Musk supports Trump’s push for presidential control over the Federal Reserve’s policies.
• Bitcoin gains momentum as a hedge against inflation amid rising U.S. national debt.

Elon Musk, the influential CEO of Tesla and SpaceX, has long been a vocal supporter of the now-President Donald Trump, particularly during his 2024 election campaign.

After Trump’s victory in becoming the 47th President of the United States, Musk openly endorsed the idea of allowing the president to play a more direct role in shaping Federal Reserve policies. 

Senator Mike Lee on ending Federal Reserve’s power

This emerged from a response to a recent post by Senator Mike Lee, R-Utah, advocating for the Federal Reserve to operate under the direct control of the president.

Adding on to this, Musk signaled his support the following day with a simple “100” emoji, commonly used to express full agreement.

For those unaware, Senator Lee had wrapped up his tweet with the hashtag #EndtheFed, calling for a radical shift in U.S. monetary policy. 

He said, 

“The Executive Branch should be under the direction of the president. That’s how the Constitution was designed. The Federal Reserve is one of many examples of how we’ve deviated from the Constitution, in that regard. Yet another reason why we should end the Fed.” 

How did this start?

For context, Lee’s post was sparked by Federal Reserve Chair Jerome Powell’s refusal to step down even if asked by incoming President Trump, a move Lee viewed as emblematic of an out-of-control system. As expected, Musk’s endorsement of Lee’s position on social media stirred further debate about the role of the Federal Reserve in U.S. economic governance. 

Reacting to the situation the community reacted as highlighted by an X user – Truth Justice who said, 

“The end of government corruption.”

The issue flared up when Fed Chair Jerome Powell reaffirmed that he would not step down if requested by President-elect Trump. This suggested a renewed friction between the central bank and the White House.

What’s more?

Historically, the Federal Reserve has operated independently to make decisions based solely on economic conditions, but during his first term, Trump frequently criticized Powell’s policies.

Thus, during the 2024 election campaign, Trump expressed interest in exerting more influence over the Fed’s actions should he return to office. Remarking on the same, in August at a press conference at his Mar-a-Lago club in Florida Trump asserted, 

“I feel the president should have at least [a] say in there.”

As expected, Musk also shared a similar sentiment in a recent tweet when he argued, 

“The unelected and unconstitutional Federal bureaucracy currently has more power than the presidency, legislature or judiciary! This needs to change.”

How is Bitcoin the savior?

With the U.S. national debt exceeding $35 trillion, Bitcoin [BTC] is emerging as a potential hedge against inflation driven by years of money printing. Figures like Florida CFO Jimmy Patronis and Senator Cynthia Lummis are pushing for BTC investments to protect purchasing power.

Additionally,  Trump has also suggested using Bitcoin to manage the national debt, highlighting its growing role in U.S. economic strategy. Therefore, as the debate on Bitcoin’s financial impact intensifies, its potential as an inflation hedge gains increasing attention.

In fact, an X user put it best when he said,