Trump and Powell: From Appointment to Change in Election Attitude and the Impact of Federal Reserve Rate Cuts
In 2017, Trump appointed Powell to lead the Federal Reserve, but during the 2024 campaign, Trump stated he would not reappoint him. While serving as president, Trump occasionally attempted to pull Powell into political disputes, complaining that Powell kept interest rates too high. On the other hand, Marta Norton, Chief Investment Strategist at Ambo Investments, noted that Trump has largely refrained from commenting on the Fed’s recent move to cut rates by 0.5 percentage points in September. Norton stated, “It’s very interesting because, typically, you wouldn’t expect the Fed to cut rates right before an election. Not only did the Fed lower rates, but it cut them by 50 basis points, and Trump’s campaign team hasn’t had much to say about it.”
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