U.S. presidential candidate Donald Trump said in an exclusive interview with Bloomberg that the Federal Reserve should avoid cutting interest rates before the November election and indicated that he would let Fed Chairman Jerome Powell serve out his term until 2026.

Trump comes to power, Powell steps down?

Trump's relationship with Federal Reserve Chairman Jerome Powell has been tense. Powell was nominated by Trump to serve as chairman of the Federal Reserve in 2017, but the two began to quickly fall out in 2018, and friction also occurred during the 2020 epidemic over the speed of interest rate cuts.

Trump said in a February 2024 interview that he would not renominate Powell and criticized him as a politician because cutting interest rates was something to help Democrats.

However, he made it clear in this exclusive interview with Bloomberg that if he wins the US presidential election in November, he will not let Powell be removed from office before the expiration of his term. He will let Powell serve as chairman until May 2026. term of office.

Trump said:

I'd let him do it, especially if I thought he was doing the right thing.

Even so, Trump has made no secret of his thoughts on interest rate policy, warning that the Federal Reserve should avoid cutting interest rates before the November election to avoid using it to boost Biden's election. Wall Street is now fully expecting two rate cuts before the end of the year, including one in September, ahead of the U.S. election in November.

Will inflation rise after Trump takes office?

Trump has advocated raising tariffs to bring more revenue to the United States, but mainstream economists do not share his view, and they warn that tariffs will further stimulate inflation. A report from the Peterson Institute for International Economics estimated that his tariff system would cost middle-income households an average of $1,700 a year in additional costs. Oxford Economics also estimates that Trump's combination of tariffs, immigration restrictions and extended tax cuts could also increase inflation and slow economic growth.

But Trump said he would lower prices by opening up more U.S. oil and gas drilling.

We have more liquid gold than anyone else!

Trump wants to collect protection money from Taiwan? TSMC fell more than 2%

Trump also said during the interview that Taiwan has taken away all the chip business and should pay the United States protection money.

(Bloomberg Exclusive Interview with Trump: Defending Taiwan is a bit difficult, semiconductors are very profitable, and the United States should be given protection fees)

These remarks caused TSMC's stock price to fall today. It fell 30 yuan to 1,025 yuan during the session, a drop of 2.85%. It also led the Taiwan stock market to fall below the 10-day moving average and close at 23,769 points.

But in fact, TSMC has set up a factory in the United States to expand its services and layout in the United States. TSMC’s heavyweight lecture will be held tomorrow (7/18).

This article Will Trump delay interest rate cuts after being elected? Economists are worried about the resurgence of inflation. Will the Fed chairman be replaced? First appeared in Chain News ABMedia.