Likewise, he did not rule out the possibility of appointing Jamie Dimon, current CEO of JPMorgan Chase, as future Secretary of the Treasury.
Donald Trump, former president of the United States and Republican candidate in the presidential elections next November, has assured that he will keep the current president of the Federal Reserve (Fed), Jerome Powell, in his position, whom he himself initially nominated for the position. Trump in 2018 and was confirmed for a second term by Joe Biden in 2022.
In an interview with Bloomberg Businessweek , collected by Europa Press, the Republican candidate for the White House, who last February had declared that he would not reappoint the president of the Fed, now states unequivocally that he will let Powell finish his term as president of the central bank, who expires in May 2026.
"I would let him comply," Trump says, "especially if I thought he was doing the right thing."
In this sense, Trump warns that the Fed should refrain from cutting interest rates before the November elections to give a boost to the economy, which could help Biden. "It's something they know they shouldn't do," he says.
Wall Street expects two interest rate cuts before the end of the year, including one, crucially, before the election.
In fact, according to the CME tool that tracks the probabilities of changes in interest rates based on the prices of 30-day federal funds futures, the market discounts a first rate cut with a probability of almost 100%. rates in September.
In this sense, market bets assume that the meeting of the Fed Open Market Committee on July 31 will end without surprises, since only a 6.7% probability is granted to a rate cut of a quarter of a percentage point, while the probability that rates will continue in a range between 5.25% and 5.50% is 93.3%.
However, ahead of the September 18 meeting, the market currently gives a 98.2% probability of an interest rate cut, with a clear preference for a cut of 25 basis points, with 91.6 % probability, although the possibility of a drop of up to half a percentage point has a probability of 6.6%, and only 1.9% believe that there would be no rate cut.
Market confidence about the possibility of a first Fed rate cut in September has increased substantially in recent weeks, since a month ago the probability of a cut was 70.2% and 29.8% of maintaining rate.
Jerome Powell, 71, assumed the position of Fed Chairman in February 2018 for a period of four years, so his initial term ended in February 2022, being nominated by the current US President, Joe Bien, for a second term as central banker.
The chairman of the Federal Reserve is a graduate of Georgetown University and a member of the private equity firm The Carlyle Group. He also worked with the President under President George Herbert Walker Bush in the 1990s, where he assumed responsibility for relations with financial institutions and the President's Mercy.
On the other hand, in the interview, Donald Trump flirts with the possibility that Jamie Dimon, current CEO of JPMorgan Chase, the largest US bank, could become Secretary of the Treasury, a position currently held by Janet Yellen.
The Republican candidate for the White House thus demonstrates his change of opinion regarding the veteran Wall Street banker, the last survivor of the great financial crisis of 2008, whom he came to call "globalist" and "overrated."
"He's someone I would consider," Trump says.
