Trump’s victory threatens to upend the US economic outlook and alter Jerome Powell-led Federal Reserve’s policy calculus in the months ahead, while renewing questions about how fiercely he might pressure the central bank during his second term in the White House.
Trump promised to wield tariffs more aggressively against US trading partners, deport millions of undocumented immigrants and extend his 2017 tax cuts.
Those policies, if enacted, could put upward pressure on prices, wages and the federal deficit, according to many estimates. That would complicate the Fed’s job as officials seek to lower inflation to their 2% objective while protecting the labour market.
The central bank could fall under an uncomfortable political spotlight should Trump follow his pattern of publicly attacking the Fed chair.
