BUSINESS-ECONOMY
The new Trump administration may cause friction, but Federal Reserve Chair Jerome Powell has played down the likelihood of conflict. Powell also said that policymakers will proceed with caution in their efforts to cut interest rates further. The Fed's preferred measure of underlying inflation increased on an annual basis in October. According to Powell, the risks to the job market have diminished. That offers support to Powell's comments on caution on further rate cuts. The fed policymakers next meet on December 17th and 18th. However, there was no indication from the fed chair as to whether he supported a rate cut in December. Several economists predict the Fed to cut rates by a quarter point this month before a pause in January. Previously, trump and his administration have been negative on the fed chief. At one point during his first term, trump wanted to fire Powell. However, when asked about Scott Bessent, the treasury chief and the president-elect, Powell said he is confident in his ability to collaborate with the next government. Powell said, "I fully expect that we'll have the same general kinds of relationships, institutional relationships, for example, with the council of economic advisers, but most importantly with the treasury department." On Bessant, the fed chief said, "Confident that I will have the same kind of relationship with him once he's confirmed as I've had with other treasury secretaries." Bessent had previously proposed the concept of appointing a "shadow-fed chair" to weaken the leader's sway over the financial markets. The suggestion was for a shadow leader even before Powell's term, which ends in 2026. However, Powell does not think the incoming administration would pursue that idea. He said, and I quote him here: "I don't think that's on the table at all." (With inputs from the agencies) A journalist, writing for the WION Business desk. Bringing you insightful business news with a touch of creativity and simplicity. Find me on Instagram as Zihvee, tr None
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