Former Vice Chairman of the Federal Reserve Quarles: Trump's inauguration will not affect the independence and economic mission of the Federal Reserve

PANews reported on January 13 that former Federal Reserve Vice Chairman Randal Quarles stated in a recent forum that even if Trump was elected president and took office, the independence of the Federal Reserve, inflation control, and labor market would not be threatened. He emphasized that the independence of the Federal Reserve does not exclude the president from commenting on policies, but the resilience of its structure and officials ensures it is immune to political pressure. Quarles believes that tariff policy will not significantly affect inflation, although it may marginally prompt the Fed to cut interest rates. He predicts limited impact on labor market due to Trump's immigration policy.

With US non-farm employment data for December stronger than expected, major economists have generally lowered their expectations for further rate cuts by the Fed in 2025. The market predicts only one possible rate cut this year or even postponed until October. According to Quarles, current market predictions about Fed actions are more accurate than last year.