Donald Trump, the Republican presidential candidate, announced in an interview with Bloomberg Businessweek that he would allow Federal Reserve Chair Jerome Powell to complete his term if he wins the November election.
“I would let him serve it out, especially if I thought he was doing the right thing,” Trump stated.
President Joe Biden had nominated Powell for a second four-year term as Fed chief in May 2022. Powell is set to remain a Fed governor until January 31, 2028.
Trump’s remarks mark a significant shift, given his historically contentious relationship with Powell.
During the Bloomberg interview, Trump emphasized that the Federal Reserve should avoid cutting interest rates before the November elections, where he faces Democrat Joe Biden. Over the past week, Powell has been repeatedly questioned about whether the upcoming election would influence the Fed’s decision on rate cuts. Powell reiterated on Monday that he and other policymakers do not consider political factors in their decision-making.
Apart from the Fed, the former US President discussed several other key points regarding his plans for a potential second term.
If re-elected, Trump stated he would implement new tariffs to extract trade concessions from both allies and adversaries. He plans to renew expiring tax cuts, reduce regulations, increase domestic energy production through more drilling, and support the crypto industry while curbing big tech companies.
Trump believes higher tariffs will benefit the US, contrasting with mainstream economists who warn they could increase inflation. “I would let him serve it out, especially if I thought he was doing the right thing,” Trump reiterated about Powell’s term.
Trump’s comments on tariffs suggest a continuation of his protectionist trade policies. “We need to bring manufacturing back to America,” he said, emphasizing the need for economic independence.
Regarding tax cuts, Trump expressed his intention to extend the 2017 tax cuts, which are set to expire in 2025. “Renewing these tax cuts is crucial for sustaining economic growth and supporting American families,” he argued.
Trump also highlighted his plans to reduce regulations, particularly those he perceives as stifling business innovation and growth. “We need to cut red tape and allow our businesses to thrive,” he stated.
On energy policy, Trump emphasized the importance of increasing domestic production. “We need to be energy independent,” he said, advocating for more drilling and exploration.
Trump’s support for the crypto industry marks a departure from his previous skepticism. “We need to embrace technological innovation and support the growth of the crypto industry,” he said.
However, Trump also voiced concerns about the power of big tech companies. “We need to curb the influence of big tech and ensure a level playing field for all businesses,” he stated.
Trump’s remarks on Powell and his broader economic plans provide insight into his potential second-term agenda, reflecting his focus on economic growth, deregulation, and trade protectionism. As the November election approaches, these positions will likely play a significant role in the ongoing political debate.
