Bridgewater: Trump may favor a Fed chairman candidate who can tolerate inflation more.

On November 20, Bob Prince, Chief Investment Officer of Bridgewater Associates, stated at the third annual Global Financial Leaders Investment Summit held in Hong Kong that President-elect Trump's policies on tariffs, fiscal stimulus and immigration may prevent the United States from achieving a 2% inflation target. If U.S. inflation remains close to 3% about a year and a half later, Trump might be inclined to nominate a Federal Reserve Chairman who is willing to accommodate higher inflation targets, which would allow him to cut interest rates. He added, "People are looking forward to rate cuts. But if the inflation rate remains unchanged, it may not be possible to cut rates. I think the situation will be interesting after 18 months when current Federal Reserve Chairman Powell's term ends."