Trump publicly claims that Wash has the ability to drive U.S. economic growth by 15%, and once again criticizes Powell.

On February 10, U.S. President Trump stated that his nominee for Federal Reserve Chair, Kevin Wirth, has the ability to drive the U.S. economy to achieve growth of up to 15%. This statement was widely regarded as extremely optimistic and also highlighted the significant political and policy pressures Wirth would face if confirmed. In an interview with Fox Business, Trump said Wirth was his “second choice” when he last selected a Fed Chair, and openly admitted that appointing Powell was a “major mistake” at the time. He stated that if Wirth “performs at the expected level,” the U.S. economy “could achieve 15% growth, or even more.” However, Trump did not specify the exact criteria for this growth target. In comparison, the U.S. economy’s growth forecast for this year is about 2.4%, with an average annual growth rate of approximately 2.8% over the past 50 years. Historically, it is extremely rare for U.S. GDP growth to exceed 15%. Trump has previously expressed hope that the Federal Reserve would adopt more accommodative monetary policies and emphasized that if Wirth supports rate hikes, he would not be chosen for the position. These comments are also seen as signals that Trump is attempting to stimulate the economy through monetary policy ahead of the midterm elections. Additionally, Trump’s remarks indicate that he is not concerned about inflation risks. Analysts point out that an economic growth rate close to 15% would typically be accompanied by a significant rise in inflation, yet current U.S. inflation levels remain high.