Trump: "Anyone Who Disagrees with Me Will Not Be Fed Chairman"
US President Donald Trump revealed on Tuesday (December 23) that he wants the new Federal Reserve (Fed) chairman to align with his views on interest rate policy. In a strong statement, Trump said the incoming Fed chairman must be prepared to lower interest rates if the market is doing well. He also added, "Anyone who disagrees with me will never be Fed Chairman," affirming his strong position regarding the selection of the new Fed chairman.
Trump's statement adds to political tensions surrounding the independence of the Federal Reserve, an institution expected to make policy decisions based on economic data, not political pressure. Trump has frequently criticized current Fed Chairman Jerome Powell for not being aggressive enough in lowering interest rates, which he views as a drag on economic growth and the stock market.
However, Trump believes that lower interest rates will benefit the market and the economy as a whole. He suggested that lowering interest rates would lead to more money flowing into the market, which in turn would strengthen stock market performance and facilitate investment. Trump even claimed that lower interest rates would spur stronger economic growth.
On the other hand, criticism of Trump's interest rate policy is growing, with many economists concerned that lowering interest rates too quickly could trigger inflation and debt overruns. For example, some economists warn that persistently low interest rates could increase the market's reliance on monetary stimulus.
Criticism of Trump has also come from within the Federal Reserve itself, with several members of the Board of Governors emphasizing the importance of maintaining an independent, data-driven monetary policy, rather than following the political whims of certain parties. Nevertheless, Trump's influence in the upcoming Fed chair election could be significant, given that Jerome Powell's term expires in 2026.
Meanwhile, the market continues to monitor developments regarding the Federal Reserve's interest rate policy. Most traders and investors expect a more dovish policy to continue under Trump's new chair, who will likely keep interest rates low to support economic growth and a growing stock market. (asd)
Source: Newsmaker.id
