“In the near term, the election will have no effects on our policy decisions,” he told reporters, underscoring the Fed’s intent to maintain an independent approach regardless of political shifts.
Additionally, with the Republican Party securing a majority in the Senate following the recent election, Trump may face fewer obstacles in advancing his economic agenda, particularly if the GOP gains control of the House of Representatives.
Steve Mnuchin, Trump’s former Treasury secretary, suggested that the president-elect is likely to prioritize tax cuts and the imposition of tariffs, particularly targeting China.
Powell also acknowledged that future policy directions under the new administration could eventually influence the Federal Reserve’s dual mandate of maximum employment and price stability.
However, he stressed that it is “such an early stage” to predict any specific impacts.
