In a recent report by The Wall Street Journal, it has been revealed that right-wing allies of former U.S. President Donald Trump are crafting a plan to grant the executive branch control over Federal Reserve policy decisions. This effort comes as Trump continues to signal his authoritarian intentions for a potential second term.

The group of Trump allies, whose work has been conducted secretly, has produced a 10-page document outlining their policy vision for the central bank. Among the proposed changes, the group argues that Trump should be consulted on interest-rate decisions. The draft document also recommends subjecting Fed regulations to White House review and using the Treasury Department as a check on the central bank. Furthermore, the group claims that if Trump were to return to the White House, he would have the authority to remove Jerome Powell as the Fed chair before his term ends in 2026.

During Trump's first term, he frequently criticized Powell and asserted his right to dismiss him, claiming that the Fed chair did not do a good job. The Federal Reserve is an independent body with limited congressional oversight.

Progressive lawmakers and economists have criticized the Fed's recent decision to raise interest rates, arguing that it would harm workers and that the increased prices were primarily caused by pandemic-related disruptions and corporate profiteering. Meanwhile, Trump himself has stated in the past that interest rates were "too high" but did not explicitly state that he would pressure the central bank to lower them.

Economist Paul Krugman warned earlier this year that Trumpist attacks on the Fed for cutting interest rates were imminent. Krugman also expressed concern that the Fed might be influenced by accusations from Trump that its actions were politically motivated to benefit his opponents.

According to The Wall Street Journal, individuals who have spoken with Trump about the Fed suggest that he wants someone in charge who will treat him as an ex officio member of the central bank's rate-setting committee. Under this approach, the chair would regularly seek Trump's views on interest-rate policy and negotiate with the committee accordingly.

Trump's team has reportedly discussed potential replacements for Powell, including former White House economic adviser Kevin Hassett and Arthur Laffer, a former Reagan adviser and advocate for tax cuts.

This plot by Trump's allies to grant him control over the Federal Reserve, if he were to be reelected in November, provides insight into his likely approach to a second term. Trump has made statements indicating his desire to be a dictator from "day one," using federal authority to target political opponents, initiating extensive deportations, and leveraging the military to suppress protests.

Constitutional law experts warn that if a president is determined to become a dictator, the compliance of the military and other federal agencies becomes crucial, limiting the influence of Congress and the courts.

It remains to be seen how these plans to reshape the Federal Reserve will progress in the coming months and whether they gain traction among Trump's supporters. The potential implications for the U.S. economy and the independence of the central bank are subjects of concern for both experts and critics.