Its Over, page-22863

....how will Trump bring inflation lower, if he plans to cut taxes (to the rich and corporations) raising the deficit while lowering rates and the dollar. He wants lower taxes (boomers can spend more), lower interest rates and dollar will all fuel inflation.

....I read that Biden was considering capping rent increase to 5%.  

Trumponomics and the Fed

One of the hot debates on Wall Street this election cycle is how Donald Trump would deal with the Fed if he is re-elected and, in particular, if he would fire or demote Jay Powell as chairman, The Times’s Jeanna Smialek writes for DealBook.

In an interview with Bloomberg Businessweek conducted before last weekend’s assassination attempt, Trump said that he did not plan to fire Powell, allowing him to serve out his term. But he also added some drama by making the statement conditional, saying that he would keep Powell on “especially if I thought he was doing the right thing.”

That said, even if Trump wanted to fire him, it’s not clear that he legally could. Nonetheless, Trump’s phrasing seemed to imply that he believed he had a choice.

Trump appointed Powell, but turned on him over interest rate policy. The former president was displeased when the central banker refused to cut rates to bolster economic growth. President Biden reappointed Powell to a new four-year term that started in 2022.

There have been questions about whether Trump would fire Powell. Rates are much higher now than when Trump was in office. Given his history of criticizing Powell’s policies, investors and economists have been wondering if Trump might actually try to fire the Fed chair if he were to win in November.

Trump still wants low rates, eventually. Asked to describe his philosophy for the economy, Trump talked about “low interest rates and taxes.” But there’s a hitch: The Fed sets rates independently of the White House. Some conservatives have suggested that Trump could try to wrestle Fed policy under White House control, but Trump did not talk about that in this interview. Instead, he spoke about bringing down inflation, which would in turn allow the Fed to cut borrowing costs.

But Trump does not want the Fed to move until after the election. Even if Trump wants lower borrowing costs, he called rate cuts before the election “something that they know they shouldn’t be doing.” That’s at odds with market expectations: Futures traders this morning were pricing in a 98 percent chance of a rate cut in September, with a second to come on Nov. 7, two days after the election. Those expectations have helped fuel a market rally, with the S&P 500 up 10 of the past 11 sessions, and notching 38 highs this year.

Trump faces another conundrum with the dollar. The Republican candidate and his running mate, Senator J.D. Vance of Ohio, have both railed against a strong dollar as a threat to corporate America’s global trading prowess and to jobs, especially in manufacturing. Yet that position appears to be at odds with the Republican Party’s official platform of preserving the greenback as the world’s reserve currency.