As previously reported, Peter Navarro indicated that Jerome Powell would be “gone in a hundred days”. Trump in a Interview with Bloomberg:
“I would let Powell finish his second term,” Trump said, “especially if I thought he was doing the right thing.”
Still, Trump has ideas about interest rate policy, at least in the short term. The Fed, he warns, should hold off on cutting rates before the November election, which would provide a boost to the economy and Biden. Wall Street expects two interest rate cuts before the end of the year, including a crucial one before the election. “That’s something they know they shouldn’t do,” he says.
Current probabilities are for several reductions by the end of the year. As of 7/15 and a month ago:
Source: Atlanta Federationconsulted on 07/16/2024.
