Summary

• President Trump is strategically seeking to accelerate U.S. economic growth through a combination of fiscal expansion and monetary support.
• Trump's primary objective is to influence the Federal Reserve to adopt a more accommodative monetary policy, despite resistance from Chairman Powell.
• The administration is leveraging increased military spending, particularly related to the Iran conflict, to justify fiscal expansion.
• This environment aims to pressure the Fed into supporting fiscal initiatives, even if the central bank is not fully aligned with the administration's goals.

The Federal Reserve moved away from its extended round of quantitative tightening around December 1, 2025.

Quantitative easing, therefore, began in the month of December.

On February 28, President Trump began the "war" with Iran.

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