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What’s at Stake With the Fed, Now That Trump Has Won?

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US president Trump appointed Powell in 2016 in his first year in office. DJT's advisers have told him that it is important that the Fed have autonomy, and that the Fed was structured from inception for having the independent judgement for what is best for the economy. At times DJT has wanted the Fed in his first term to at least consult with the president.

In this context remember that Powell as chair of the Fed will be till May 2026. And Powell will remain as Governor on the Fed Board till Jan 2028. Of the current 7 governors the only other terms of a Fed Governor that expires early is Adriana Kugler in 2026.

DJT tariff and tax policies could increase inflation and growth which will require the Fed to recalibrate its views on cutting rates. 



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