Biden Advisor: If the Trump administration interferes with the Federal Reserve's interest rate policy, it could trigger a rebound in inflation

According to Jinshi News, Jared Bernstein, the chairman of Biden's Economic Advisory Committee, warned before his departure that if the Trump administration interferes with the Federal Reserve's interest rate policy formulation, it could trigger a rebound in inflation. On the same day, Scott Bessent, Trump's nominee for Treasury Secretary, promised at a congressional confirmation hearing to uphold the independence of the Federal Reserve and emphasized that FOMC should maintain its independence in monetary policy decisions.

Bernstein analyzed that policies proposed by Trump such as large-scale tariffs, tax cuts for the rich and deportation of undocumented immigrants will all push up prices. If they further damage the independence of Federal Reserve it will exacerbate inflation risks.