BlockBeats News, February 10th. U.S. President Trump stated that his nominee for Federal Reserve Chair, Kevin Wash, has the ability to drive the U.S. economy to grow as much as 15%. This statement is widely seen as extremely optimistic by the public and highlights that Wash, if confirmed, will face significant political and policy pressures.
Trump said in an interview with Fox Business Network that Wash was his “second choice” for the Fed Chair nomination, and bluntly stated that appointing Powell back then was a “big mistake.” He mentioned that if Wash “performs at the level he is capable of,” the U.S. economy “can achieve 15% growth, or even more.”
However, Trump did not specify the specific metric to which this growth target refers. For comparison, the U.S. economy’s growth expectation for this year is around 2.4%, with an average annual growth rate of around 2.8% over the past 50 years. Historically, the U.S. GDP growth rate exceeding 15% is extremely rare.
Trump has previously stated multiple times that he hopes the Fed Chair adopts a more accommodative monetary policy and emphasized that if Wash supports rate hikes, he would not choose him for the position. These remarks are also seen as Trump’s attempt to signal economic stimulus through monetary policy before the midterm elections.
In addition, Trump’s statement indicates that he is not concerned about inflation risks. Analysis points out that an economic growth rate close to 15% usually accompanies a significant increase in inflation, while the current U.S. inflation level remains elevated.
