TechFlow news, January 17 — According to Jinshi News, Jared Bernstein, outgoing Chair of the White House Council of Economic Advisers under the Biden administration, warned that if a potential Trump administration intervenes in the Federal Reserve's interest rate policy decisions, it could trigger a resurgence of inflation. On the same day, Scott Bessent, Trump’s nominee for Treasury Secretary, pledged to uphold the Fed's independence during his congressional confirmation hearing, emphasizing that the Federal Open Market Committee (FOMC) must remain independent in its monetary policy decisions.
Bernstein analyzed that Trump's proposed policies—such as sweeping tariffs, tax cuts for the wealthy, and mass deportation of undocumented immigrants—would all contribute to higher prices, and undermining the Federal Reserve’s independence would further exacerbate inflationary risks.
