Jerome Powell, the head of the US Federal Reserve, is well aware of Donald Trump’s moves, especially the ones that involve removing him as the current Fed chair. Trump has outwardly spoken about replacing Powell with someone better multiple times, with Powell finally acknowledging the fact that he knows that the US president is up to something. Powell seems to be in sync with what Trump wants; however, in his latest FOMC meeting, he shared what he thinks will be his legacy, the aftermath before he passes the baton to his successor.
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Powell’s Remarks on His Legacy
The Federal Reserve’s latest FOMC meeting was intense, with Powell announcing a 25-bps rate. Soon after the announcement, the US dollar took a mild dip, with investors lessening their exposure towards risk assets. In that particular meeting, Powell shared a heartfelt note about his legacy, adding how he does not want to pass the torch to his successor unless inflation comes back to 2%. He further shared how he wants the US economy to attain its glory, with the labor market projecting a strong stance.
“Powell on his legacy: I really want to turn this job over to whoever replaces me with the economy in really good shape… I want inflation to be under control, coming back down to 2%, and I want the labor market to be strong. That is what I want.”
Powell had also shared his stance on rising inflation, stating how Trump’s tariffs are adding more pressure on the US economy.
“Powell: If you get away from tariffs, inflation is in the low twos, so it is really tariffs that are causing most of the inflation overshoot.”
The Next Fed Chair Appointment
According to Steven Hawke, a notable economic expert, the speculative regimens are hinting at Kevin Hassett as the next Fed chair.
Hassett, in his recent interview, shared his insights about the US economic development, adding how he wants to fix what the Biden government could not repair when it comes to rising inflation.
“KEVIN HASSETT: “Bottom line is that if you were just a typical family, your month’s groceries cost $400 when President Trump left office, and they cost almost $550 when Joe Biden left office. That’s an extra $150 a month after also paying $14,000 more a year for your mortgage; it really adds up to a lot of stuff that has to be fixed.”
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