Donald Trump, the Republican presidential candidate, said in an interview with Bloomberg Businessweek that he would allow Federal Reserve Chair Jerome Powell to complete his term if he won the November election.
"I would let him serve it out, especially if I thought he was doing the right thing," Trump said.
President Joe Biden had nominated Powell for a second four-year term as Fed chief in May 2022. Powell will also remain a Fed governor until January 31, 2028.
Trump’s remarks represent a noteworthy change in stance, given his historically contentious relationship with Powell.
During the Bloomberg interview, Trump also stressed that the Federal Reserve should avoid cutting interest rates before the November elections, where he faces Democrat Joe Biden.
Over the past week, Powell has been repeatedly questioned about whether the upcoming election would influence the Fed's decision on rate cuts. Powell reiterated on Monday that he and other policymakers do not consider political factors in their decision-making.
Apart from the Fed, the former U.S. President discussed several other key points on his plans for a potential second term.
If re-elected, Trump said he would implement new tariffs to extract trade concessions from both allies and adversaries. He plans to renew expiring tax cuts, reduce regulations, increase domestic energy production through more drilling, and support the crypto industry while curbing big tech companies.
Trump believes higher tariffs will benefit the US, as opposed to mainstream economists, who warn they could increase inflation and act as a tax hike for American households.
He also expressed a willingness to challenge established US foreign policies, such as protecting Taiwan from China. His skepticism is partly due to the logistical challenges of defending a distant island and his desire for Taiwan to financially compensate the U.S. for its protection.
“I mean, how stupid are we? They took all of our chip business,” Trump said. “They’re immensely wealthy.
“I don’t think we’re any different from an insurance policy,” he continued. “Why are we doing this?”
In response to his comments, TSMC stock fell 3.6% in pre-market US trade.
Moreover, the 78-year-old told Bloomberg he would aim to lower the corporate tax rate to 15%. If that target appears too challenging to achieve, he would be content with cutting it to 20%, a figure he likes for its "simplicity.”
Intriguingly, Trump also told Bloomberg he’s reconsidered his view of JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon, whom he previously labeled a “highly overrated Globalist.”
The former president said Dimon is “somebody that I would consider” for a new Treasury Secretary.
If chosen, Dimon would join an administration likely filled with former executives, including North Dakota Governor Doug Burgum, a former software startup leader, and Virginia Governor Glenn Youngkin, a former Carlyle Group (NASDAQ:CG).
“Youngkin is prime time,” Trump says. “I’d love to have him in my administration.”
Joe Biden's poor debate performance on June 27 heightened concerns about his cognitive health, causing an existential crisis within the Democratic Party. In turn, this boosted Trump’s lead in many polls.
In addition, many believe surviving an assassination attempt over the weekend has further reinforced Trump's already strong odds of securing his second term.