According to Odaily Planet Daily, Bob Prince, chief investment officer of Bridgewater Associates, said at an investment summit in Hong Kong that Trump's policies may make it impossible for the United States to achieve its 2% inflation target.
If U.S. inflation is still close to 3% a year and a half from now, Trump may nominate a Fed chair who is willing to accept a higher inflation target in order to cut interest rates.
He added that if inflation remains constant, rate cuts may not be possible, and the situation will be interesting in 18 months when the term of current Fed Chairman Powell ends.