Powell's Latest News：

On Relationship with Trump

Powell expressed hope to establish a good relationship with the White House under Trump's leadership and his nominated candidate for Secretary of the Treasury. Trump stated on NBC's Meet the Press that there are no plans to remove Powell before his term ends in May 2026. However, the relationship between Powell and Trump remains uncertain, especially in light of the Federal Reserve's decision to possibly begin raising interest rates again, which could lead to new conflicts.

On Inflation and Interest Rate Expectations

Powell indicated in December that the Federal Reserve expects inflation to be higher than previously anticipated, projecting it to reach 2.5% by the end of 2025, instead of the previously forecasted 2.2%. This adjustment led the Federal Reserve to reduce its expected number of rate cuts from 4 to 2 next year. He also pointed out that the Federal Reserve still faces too many unknowns regarding how policies proposed by Trump, such as tariffs, will affect interest rate settings.

On the Rotation of Federal Reserve Voting Members

In 2025, Boston Fed President Collins, St. Louis Fed President Bullard, Kansas City Fed President George, and Chicago Fed President Goolsbee will replace Cleveland Fed President Mester, San Francisco Fed President Daly, Richmond Fed President Barkin, and Atlanta Fed President Bostic, becoming the new voting members. Among the new voters, except for Goolsbee who is the only "dove," Collins and Bullard are categorized as moderately "hawkish," while George is classified as moderately "hawkish," which may lead to more divisions within the FOMC of the Federal Reserve in 2025.