Powell says he's not worried about the Fed losing its independence under Trump

Published On Dec 4, 2024, 2:52 PM

Federal Reserve Chair Jerome Powell expressed confidence that the Fed will maintain its independence despite concerns over potential political influence from President-elect Donald Trump. During an interview, Powell referenced statutory safeguards designed to protect the Fed from political pressure and emphasized that the central bank is focused on achieving maximum employment and price stability for all Americans. He did not indicate any immediate changes to the interest rate policy but noted the Fed's ability to be cautious given the current strength of the U.S. economy. The Fed's next decision on interest rates is expected soon, with markets anticipating a 75% chance of a rate cut.

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With Powell's assurance of the Fed's independence and the likelihood of interest rate cuts ahead, sectors like utilities and consumer staples, which generally thrive in lower interest rate environments, may benefit. In particular, investors might consider ETFs that focus on these areas.

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