US President Donald Trump used a series of social media posts to outline his views on inflation, interest rates, and Federal Reserve (FED) leadership, emphasizing his strong preference for lower interest rates and the close alignment between monetary policy and market performance. He suggested that inflation would either take care of itself or could be addressed through interest rate hikes if necessary.

Trump also said he wants financial markets to respond positively to good news and negatively to bad news, reinforcing his long-standing focus on stock market performance as a key economic barometer. In that context, he stated that his top choice for the next Federal Reserve chair would be someone willing to lower interest rates when markets are performing well.

In his most pointed statement yet, Trump indicated that disagreement with his views would disqualify a candidate from consideration for the Fed's top job. The comments are likely to raise concerns among investors and policymakers about the Federal Reserve's independence, especially as markets closely monitor signals surrounding its future leadership and monetary policy direction.

Trump's Key Points

Anyone who disagrees with me will never be Fed chair.

I want my new Fed chairman to lower interest rates when the market is doing well.

I ant the market to rise when there's good news and fall when there's bad news.

Inflation will control itself, or we can raise interest rates. (alg)

Source: FXstreet