Trump and his new handpicked Fed chair—whoever it will be—are going to clash ‘almost immediately,’ economists predict

(Credit: Andrew Caballero-Reynolds—AFP/Getty Images)

A new Federal Reserve chair will be nominated soon to replace Jerome Powell, whose term ends in May. But the economy may prevent the central bank from lowering rates as much as President Donald Trump would like, according to Capital Economics.

In a note on Thursday, economists said the recent investment surge led by artificial intelligence is just the start of a multiyear boom in capital spending.