Bridgewater Says Trump May Pick More Accommodating Fed Chief
- US may miss 2% inflation target because of Trump policies
- Trump’s plans may favor stocks over bonds on higher spending
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President-elect Donald Trump’s policies on tariffs, fiscal stimulation and immigration will likely push the US toward missing its 2% inflation target, Bridgewater Associates Co-Chief Investment Officer Bob Prince said on Wednesday.
Should US inflation move closer to 3% in about one a half years from now, Trump may be inclined to nominate a Federal Reserve chairman who would accommodate the higher target and free him to cut interest rates, he said at Hong Kong’s third annual Global Financial Leaders’ Investment Summit.