Potential candidate for Fed chair says the numbers show Trump's policies are working

Core Viewpoint - The current economic scenario in the U.S. is characterized by strong growth and low inflation, attributed to effective policies from the Trump administration, particularly in tax and trade areas [1][3][18]. Economic Growth - The GDP growth rate has exceeded expectations, with predictions of reaching around 4% or even higher in the coming quarters [2][12]. - Historical comparisons are made to the Reagan era, where similar tax policies led to significant growth without inflation [5][19]. Inflation Dynamics - Current inflation rates are low, with the core Consumer Price Index (CPI) reported at 1.6%, indicating growth without accompanying inflation [9][20]. - The relationship between supply-side policies and inflation is emphasized, suggesting that increased productivity and supply can mitigate inflationary pressures [10][27]. Trade Policy Impact - A significant reduction in the trade deficit has contributed to GDP growth, with imports from China dropping from 22% in 2017 to 9% currently, which supports domestic wage growth and real incomes [15][18]. Market Sentiment - Consumer optimism is reflected in spending patterns, which are expected to drive further economic growth [29]. - The sentiment around precious metals, such as gold, is also linked to economic optimism and technological demand [30]. Federal Reserve Considerations - The Federal Reserve's approach to interest rates may need to adapt to the current economic conditions, as strong growth does not necessarily lead to inflation [20][27]. - There is speculation about potential reforms within the Fed to better align with supply-side economic principles [21][23].