"The Federal Reserve is a very interesting thing and it's sort of gotten it wrong a lot," Trump said at a news conference Thursday.
"I believe it's really a gut feeling. And I used to have it out with [Fed chair Jerome Powell]. I had it out with him a couple times very strongly. I fought him very hard," Trump stated, emphasizing his belief in his instincts over seasoned experts.
As we've previously reported, Trump would have few options to remake the Fed in his image in the first 16 months of a new term. There are no governor vacancies until January 2026, and Powell's term as chair extends until May 2026.
Trump's desire for more obedient central bankers could be constrained by the bond market, as cutting interest rates on his orders may undermine the central bank's credibility on inflation, causing longer-term interest rates to rise.
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