As noted earlier, Peter Navarro indicated Jerome Powell would be “gone in a hundred days”. Trump in a Bloomberg interview:
“I would let [Powell] serve [the second term] out,” Trump says, “especially if I thought he was doing the right thing.”
Even so, Trump has thoughts on interest-rate policy, at least in the near term. The Fed, he warns, should abstain from cutting rates before the November election and giving the economy, and Biden, a boost. Wall Street fully expects two interest-rate cuts before the end of the year, including one, crucially, before the election. “It’s something that they know they shouldn’t be doing,” he says.
Current probabilities are for multiple cuts by year-end. As of 7/15 and month ago:
Source: Atlanta Fed, accessed 7/16/2024.
