CIO Mike Sluder discusses the Fed, influences of the Trump administration and areas of risk and opportunity for investment portfolios. 

President Trump has made it clear that he wants lower interest rates and believes that the current Fed has been unwilling to move quickly enough. Trump currently has three appointed members of the 12-member voting committee and will be able to appoint a new chair in 2026, along with an additional member in 2027. It is likely that the new composition of the Fed will be more willing to lower rates, even at the expense of higher inflation.

The media has been reporting that there have been a couple of dissenters on interest rate decisions. Historically, dissenting votes are common within the Fed and have been higher during periods of heightened inflation. And while unusual, this is not the first time that a president has tried to influence the Fed.

Here are some likely consequences of heavier influence by the administration and areas of risk and opportunity for investment portfolios:

• The Federal Reserve and the Federal Open Market Committee (FOMC)
• History and Perspective
• Likely Outcome and Consequences
• Marketing Reactions
• What Does the Future Hold 

Read the full commentary.

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