When Powell's term ends next year, Trump will stop musing and appoint himself chairman of the Fed. That would, of course, be challenged in the courts. But, as the various appeals move toward the supreme court, Trump would have a field day doing to the delicate balance between inflation and employment rates what he has already done to the executive branch.
"..firms that boosted their profit margins post pandemic.." aka, greedflation.
The Economic Policy Institute calculated in 2022 that 51% of price rises were going to increased profits. So said firms may have the capacity to "eat" a fair bit. They just might, to avoid attracting Trump's attention. But, as you say, not forever.
"as I have noted, uncertainty is unusually elevated"
This statement is full of dry British wit. A dissertation could be written on the causes of that elevated uncertainty.
When Powell's term ends next year, Trump will stop musing and appoint himself chairman of the Fed. That would, of course, be challenged in the courts. But, as the various appeals move toward the supreme court, Trump would have a field day doing to the delicate balance between inflation and employment rates what he has already done to the executive branch.
"..firms that boosted their profit margins post pandemic.." aka, greedflation.
The Economic Policy Institute calculated in 2022 that 51% of price rises were going to increased profits. So said firms may have the capacity to "eat" a fair bit. They just might, to avoid attracting Trump's attention. But, as you say, not forever.
But how thick was Powell's briefcase on the morning of the Fed meeting 😉?
Stiglitz' Globalization and its Discontents would have been a better guide for the Trump brain trust (is there even such a thing). https://en.wikipedia.org/wiki/Globalization_and_Its_Discontents
At least we will get another chance to recraft our own economic system after the coming crash.
However, the US will most likely NOT be a driver in the next iteration of Bretton Woods.