Donald Trump’s Next Target
Author: Greg Valliere
June 24, 2025
FRESH FROM A STUNNING VICTORY in the Middle East, Donald Trump is mapping his next target: the Federal Reserve.
REPORTING IN THE WALL STREET JOURNAL and elsewhere portrays Trump as determined to oust Jerome Powell before his term as Chairman expires next spring, or appointing a co-Fed Chairman who would focus on policies that would stimulate GDP growth.
DOES THE ECONOMY NEED MORE STIMULUS? The Atlanta Fed GDP Now forecast is predicting growth of 3.4% this quarter, but Trump wants policies that would lower the budget deficit — a goal that has eluded him and most Republicans, who are resigned to higher, not lower, deficits.
WE HAVE SAID FOR YEARS that you underestimate Trump at your own peril, and if peace prevails in the Middle East, betting against Trump would be foolhardy. He will get his Big Beautiful Bill — either just before the July 4 break or later in July. The issue is simply when.
BUT POWELL IS A GREAT IRRITANT for Trump. The Fed Chairman is scheduled to testify before the House this morning, and we think he may sound more conciliatory on interest rates, hinting that a rate cut or two are likely in the second half.
WHAT’S THE TRUMP TARGET LATER THIS SUMMER? Vladimir Putin, perhaps the most difficult challenge of all.
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