Trump Would Allow Fed’s Powell to Stay On, Lower Corporate Tax Rate

Former President Donald J. Trump attends the Republican National Convention (RNC) in Milwaukee, Wis., on July 16, 2024. Madalina Vasiliu/The Epoch Times

Former President Donald Trump said during an interview that he would allow Federal Reserve Chair Jerome Powell to serve the rest of his term. The Republican presidential nominee also said he would lower the corporate tax rate and open the United States to more oil and gas drilling, as he outlined his economic doctrine in an in-depth, wide-ranging interview with Bloomberg Businessweek.

In February, the former president told Fox Business that he wouldn’t reappoint Mr. Powell because “he’s political” and would “do something to probably help the Democrats ... if he lowers interest rates.”

But former President Trump told Businessweek in the late June interview that he “would let him serve it out” if he’s “doing the right thing.”

The president, however, may not have the legal authority to dismiss Mr. Powell before the end of his term in May 2026, other than vaguely “for cause,” although this issue has never been tested in court.

Mr. Powell has repeatedly confirmed he intends to serve out his entire second term.

The former president said he believes the central bank should refrain from cutting the policy rate before the November election, which might boost the economy and potentially President Joe Biden.

“It’s something that they know they shouldn’t be doing,” he said.

Investors are penciling in the first rate cut at the September policy meeting. Mr. Powell and his colleagues at the central bank insist that they leave politics at the door and concentrate only on the data rather than election dates.

While speaking at the Economic Club of Washington on July 15, Mr. Powell reiterated that he intends to serve out the remainder of his term.

Former President Trump has been highly critical of Mr. Powell, even during his term in the White House.

Inflation and Immigration

While recent data suggest progress has been made in bringing inflation down to the Fed’s 2 percent target, a broad array of sticky price pressures has kept inflation elevated.

Former President Trump said one area that could help ease inflation is energy, that opening up the United States to more oil and gas drilling would lower prices.

A rig hand works on an electric drilling rig for oil producer Civitas Resources, in the Denver suburb of Broomfield, Colo., on Dec. 2, 2021. Liz Hampton/Reuters

Crude oil prices are up 14 percent so far this year, lifting the U.S. benchmark to nearly $82 a barrel on the New York Mercantile Exchange. The average price for a gallon of gasoline is about $3.51, up 14 percent year to date.

The GOP presidential hopeful said he wants to boost domestic wages and employment by grappling with the immigration file that he said he believes will transform the economy and help minorities.

“The black people are going to be decimated by the millions of people that are coming into the country,” he said. “They’re already feeling it. Their wages have gone way down. Their jobs are being taken by the migrants coming in illegally into the country.”

Wall Street

Former President Trump said that he wants to lower the corporate tax rate to 15 percent, from the current 21 percent. President Biden has proposed raising the federal corporate income tax rate to 28 percent.

In addition, former President Trump said that if he is elected, he will consider hiring JPMorgan Chase CEO Jamie Dimon as his Treasury secretary, though the former president has been highly critical of the bank executive in the past.

Another name he would consider having in his administration is Virginia Gov. Glenn Youngkin, a former co-CEO of the investment firm Carlyle Group Inc.

The former president also said that Big Tech is negatively affecting children’s mental health, contributing to the growing rates of suicide among young people.

“They have become too big, too powerful,” he said. “They’re having a huge negative impact on, especially, young people.”

He reiterated his position that he would not ban TikTok because that would reward other social media companies.

“I’m for TikTok, because you need competition,” former President Trump said.

“If you don’t have TikTok, you have Facebook and Instagram—and that’s, you know, that’s Zuckerberg,” he said, referring to Meta CEO Mark Zuckerberg.

In April, President Biden signed a law banning the Chinese-owned TikTok unless it is sold within a year.

Foreign Policy

As they were during his first four years in the White House, tariffs will have a role in crafting foreign policy in a possible second presidency.

“Man, is it good for negotiation,” he said. “I’ve had countries that were potentially extremely hostile coming to me and saying, ‘Sir, please stop with the tariff stuff.’”

In recent months, the former president has proposed 60 percent tariffs on all goods from China and 10 percent across-the-board tariffs on all goods from other nations.

He contended that places such as Germany and Scotland treat the United States “violently.”

“But I was changing all of that and that culture,” he said.

Shifting support for Taiwan may be another divergence in foreign policy from the current administration.

The former president said, “Taiwan took our chip business from us.”

He added that Taiwan is “immensely wealthy.” He suggested that Taiwan should pay the United States for protection.

“I don’t think we’re any different from an insurance policy. Why? Why are we doing this?” he asked.

His opinions of Saudi Arabia were more cordial, as he reflected on his positive relationship with Crown Prince Mohammed bin Salman Al Saud.

“He likes me, I like him,” the former president said.

Despite his pledge to expand U.S. oil and gas production that could irk the Saudi kingdom, former President Trump said, “They’re always going to need protection.”

“I'll always protect them,” he added.

In addition, the policies of President Biden and President Barack Obama pushed Riyadh into the arms of China, the former president said.

“They’re not with us anymore,” he said. “They’re with China. But they don’t want to be with China. They want to be with us.”

Since 2013, China has been the largest energy market for Saudi Arabia’s crude oil, representing more than one-fifth of the Middle East country’s exports.

Although shipments have eased since the start of the year, Saudi oil exports to China will rebound in August to at least 44 million barrels, following immense price reductions by Saudi Aramco.