The balance of risks for the Fed is shifting, Nick Timiraos, chief economics reporter at The Wall Street Journal, said on “Craman Countdown.”
Republican presidential candidate Donald Trump Federal Reserve Chairman Jerome Powell If he wins the election in November, he will complete his term as head of the central bank.
“I would leave it to him, especially if I thought he was doing the right thing,” Trump said. Bloomberg News Interview conducted in June.
Powell’s term as Chairman ends in May 2026, but his seat on the Fed’s Board of Governors will run until 2028.
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President Donald Trump shakes hands with Federal Reserve Chairman-nominee Jerome Powell (right) during the announcement of the nomination in the Rose Garden of the White House in Washington, DC. (Photographer: Olivier Doulierry/Bloomberg via Getty Images/Getty Images)
Trump also warned that the Fed should not cut interest rates before the November election, which could give the economy and Biden a boost. The Fed is widely expected on Wall Street to cut interest rates twice by the end of the year, with the first cut coming in September.
“They know they shouldn’t do that,” Trump said.
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Powell was nominated by President Donald Trump to lead the central bank in 2017, but faced relentless criticism from the former president, who repeatedly threatened to fire him as Fed chair and chastised him for raising interest rates as “stupid.” In nominating Powell, Trump broke with precedent by not nominating him. Janet YellenFormer Federal Reserve Chairman nominated for a second term by then-President Barack Obama.
Former President Donald Trump stands alongside other Republicans during the Republican National Convention at Fiserv Forum on July 15, 2024 in Milwaukee, Wisconsin.
“I think it’s important to be aware of what’s going on in the country,” Powell said in an interview with FOX Business’ Maria Bartimo in February. Do not reappoint Powell He is serving his third term as Chairman of the Federal Reserve.
“I think he’s political,” he said at the time. “I think if he lowers interest rates, he’s probably going to do something that helps Democrats.”
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Policy makers are expected to raise interest rates sharply in 2022 and 2023 to their highest levels in more than two decades, Slow down the economy And inflation is subdued.Amid signs that inflation is normalizing, officials are struggling with when to take off the brakes.
When interest rates rise, they tend to push up interest rates on consumer and business loans, forcing employers to cut spending and slowing the economy. Rising rates have pushed the average interest rate on a 30-year mortgage above 8% for the first time in decades. The cost of all kinds of borrowing, including home equity loans, auto loans and credit cards, has also skyrocketed.
