Bridgewater: Trump may prefer a Fed chairman who is more tolerant of inflation

Odaily Odaily News: Bob Prince, chief investment officer of Bridgewater Associates, said at the third annual Global Financial Leaders Investment Summit held in Hong Kong on Wednesday that US President-elect Trump's policies on tariffs, fiscal stimulus and immigration may prevent the United States from achieving its 2% inflation target. If the US inflation rate is still close to 3% in about a year and a half, Trump may be inclined to nominate a candidate for the Federal Reserve chairman who is willing to comply with a higher inflation target, which will allow him to cut interest rates. He added, "People are looking forward to rate cuts. But if the inflation rate remains unchanged, then it may not be possible to cut interest rates. I think the situation will be interesting in 18 months, when the current Federal Reserve Chairman Powell's term will end." (Jinshi)