Unlikely Trump Pressure on Fed Will Push Inflation Above 2% Target, Gavekal Research Says

According to Gavekal Research, the scenario of Trump pressuring the Federal Reserve to cut rates and pushing inflation above the Fed's 2% target is unlikely to occur, the institution said in a recent report. The assessment comes after seven months of developments that include the appointment of Kevin Warsh to lead the Fed and the reappointment of 11 out of 12 regional Fed presidents. At Warsh's first meeting earlier this month, the Fed emphasized its commitment to price stability, surprising some market participants who had expected a more dovish stance under the new chair.
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