Can Trump Fire Jerome Powell? Fed Chairman Says He Won’t Resign If Trump Asks
ForbesNOV 2024
US Fed Cuts Rates, Markets Soar After Trump Victory
US Fed Cuts Rates, Markets Soar After Trump Victory
Above: Jerome Powell, chairman of the US Federal Reserve, during a news conference on Nov. 7, 2024. Image copyright: Ting Shen/Contributor/Bloomberg via Getty Images
The Spin
All it took was for Trump to get reelected to get America back on a positive roll. In addition to the Fed's interest rate cut, major manufacturers announced they're bringing jobs back to the US and China announced it wants to have better relations. In addition, numerous warring parties overseas have announced a desire for peace. This a strong start to what will be an even stronger term.
This announcement is being falsely accredited to Trump's reelection. This cut was made possible because inflation significantly cooled under the Biden administration. But there's a softening job market, and if Trump goes through with some of his promised economic policies another rate cut may not come, or worse, the economy could head in the opposite direction.
Metaculus Prediction
There's a 15% chance that the US will enter a recession before 2025, according to the Metaculus prediction community.