Trump's relationship with the Federal Reserve
• Conflict of policy ideas: During his presidency and campaign, Trump vigorously promoted tax cuts and deregulation policies to stimulate economic growth, while the Federal Reserve, based on analysis of economic data, believes that moderate interest rate hikes or maintaining stable rates are necessary to prevent economic overheating and financial risk, and to maintain sustainable economic growth, highlighting a clear ideological conflict between the two.
• Political pressure and independence game: Trump has publicly criticized the Federal Reserve's interest rate hike policy and hinted at firing Fed Chair Powell, showing his dissatisfaction with the Fed's monetary policy and his tendency to intervene. However, the Federal Reserve has a relatively independent status, with its core responsibilities being to control inflation and ensure financial stability, and it will not easily be disturbed by political factors.
Trump's relationship with AI
• Policy support and industrial promotion: Trump has shown great interest in artificial intelligence, having signed the "American AI Initiative," prioritizing AI technology as a key area for fundamental research investment, and committing to increase investments in AI and related fields to consolidate the U.S.'s competitive edge in this area. Furthermore, he plans to appoint a dedicated "AI Minister" to oversee AI affairs.
• Regulatory attitude and industrial development: Trump expressed the desire to abolish Biden's executive order that hinders AI innovation, showing a tendency towards deregulation in AI, which could accelerate capital injection and the industrialization and application of AI, further strengthening support for the domestic AI industry in the U.S., but it may also bring certain risks.
The relationship between the Federal Reserve and AI
• Influence of AI on monetary policy: Fed Governor Bowman pointed out that artificial intelligence may influence monetary policy through its economic impact, such as changing the labor market, affecting productivity, the natural unemployment rate, and the natural interest rate. Additionally, the broader use of AI can also check the reliability of data, thereby improving the quality of data relied upon by monetary policymakers in decision-making.
• Impact of monetary policy on the AI industry: The Federal Reserve's monetary policy can influence the development of the AI industry to some extent. For example, in a low-interest-rate and loose monetary environment, businesses and investors can more easily obtain funding, which may encourage more investment in AI research and application, promoting the development of the AI industry; conversely, a tight monetary policy may put funding pressure on the development of the AI industry.
