How the Fed and Trump could collide in 2025
Published On Dec 31, 2024, 4:00 AM
The article discusses the potential conflicts between President-elect Donald Trump and Federal Reserve Chair Jay Powell in 2025. There are concerns that Trump's economic policies could lead to increased inflation, forcing the Fed to reconsider interest rate cuts. Tensions have previously been evident, with Trump criticizing Powell while also claiming he would not fire him. Powell emphasizes the Fed's independence and the uncertainty surrounding how Trump's proposed policies, including tariffs, could affect the economy and monetary policy. Trump aims to create a more efficient government, which could involve cuts to the Fed, fueling speculation about the Fed's workforce and future operations.
Stock Forecasts
SPY
Negative
If Trump's policies lead to higher inflation and the Fed is forced to raise rates instead of cutting them, it could create significant market volatility and negatively impact investor sentiment.
Related News
Stock futures tick lower as S&P 500 closes out second year in a row with 20% gain: Live updates
Dec 30, 2024, 6:07 PM
The S&P has surged more than 24% this year, on pace for its second consecutive annual gain above 20%.
Exchange-traded funds have a 'tax magic' that many mutual funds don't offer
Dec 30, 2024, 2:30 PM
Fewer exchange-traded funds generate capital gains distributions for investors each year relative to mutual funds.
NYSE, Nasdaq to close Jan. 9 for national day of mourning following death of Jimmy Carter
Dec 30, 2024, 12:45 PM
The New York Stock Exchange (NYSE) and the Nasdaq will participate in the national day of mourning for the late President Jimmy Carter on Jan. 9 by closing their markets.