Trump Criticizes the Unusual Market Reaction, Federal Reserve Chair Appointment Should Align with His Policy Proposals
On November 23, U.S. President Trump released a lengthy post on his social media platform Truth Social, elaborating on his sharp views regarding the current market reaction, monetary policy, and the appointment of the Federal Reserve leadership.
Trump first cited the unexpectedly high GDP growth rate for the third quarter (4.2%, far exceeding the 2.5% forecast) as an example, pointing out that the market is experiencing an "unusual" phenomenon, as past positive news would boost the market, but now often leads to stable or declining stock prices.
He believes this is due to the market forming a kind of fixed mindset, where any strong economic data immediately triggers interest rate hikes to curb "potential" inflation. Trump attributes this market psychology to erroneous policy expectations and claims that "a strong market does not trigger inflation; foolish policies do."
Based on this judgment, Trump has made clear demands regarding the policy direction of the new Federal Reserve Chair. He stated his hope that the new chair would proactively lower interest rates when the market performs well, rather than suppressing market trends for no reason.
His core vision is to reshape a healthy market structure not seen for decades, allowing the market to rise on positive news and retreat on negative news, returning to the normal operating state it should have.
However, on the issue of inflation, he holds a laissez-faire attitude, believing inflation will ease on its own, and that even if necessary, interest rate hikes could be chosen at a "proper time," but absolutely not to stifle the market's upward momentum.
Finally, Trump links policy disagreements to personnel appointments and establishes a non-negotiable red line. He fiercely criticizes those who attempt to suppress the market's upward momentum, labeling them as so-called "nerds," and firmly states: anyone who is contrary to his policy proposals can never become the Federal Reserve Chair.
These remarks also set core principles for the upcoming Federal Reserve Chair nomination, making absolute loyalty and support for Trump's policy proposals core political requirements, a standard that has long transcended the realm of technical bureaucrats, becoming a thorough political declaration.
