“I think Trump is really holding a grudge, and rightly so” noted Antoni, “I’m not sure that there’s anything Trump can do to work with this institution [the Fed]. I think what he really needs to do is clean house.
As basis for this recommendation, he argues that the Fed has been political in dropping interest rates during the Biden-Harris administration, while likely holding rates under Trump 2.0. Of course, Dr. Antoni does not make much reference to the Taylor rule — which can be excused as his dissertation was in public finance — but the rule suggests that the current rate is appropriate.
Source: Atlanta Fed.
I must say the inconsistency I see is that, as Dr. Antoni has been arguing that the US has been in recession since July or August, and such instances it would’ve made perfect sense to reduce interest rate. (I don’t know what Dr. Antoni has been arguing is the state of the economy since the election.)
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