As a developer and businessman, Donald Trump called himself “The King of Debt,” and had reason to love low interest rates. Candidate Trump, on the other hand, mouthed orthodox GOP blather about how the Fed was corruptly debasing the currency to prop up the Obama agenda. Given his concerns about GDP growth, President Trump has powerful incentives to ignore his campaign rhetoric and promote low rates. How will he attempt to resolve these obvious contradictions?
Given Trump’s aversion to everyone and everything tied to Obama, it was never likely that he would reappoint Janet Yellen, which presumably is why she felt empowered to disparage his regulatory agenda. My guess is that he will nominate someone with few, if any, previously expressed views on the subject. The nominee will obfuscate and essentially tell everyone what they want to hear, will be confirmed, and then will be an inflation dove in practice.