Trump's Fed Leadership Shuffle: The Quest for Lower Rates
President Trump focuses on appointing a new Federal Reserve Chair who aligns with his goals to lower interest rates significantly. He has criticized current Chair Jerome Powell for maintaining high rates and aims to nominate a pro-cut successor, despite recent shifts in Supreme Court opinion on presidential powers over Fed leadership.
President Donald Trump has laid down a clear litmus test for the next Federal Reserve Chair—lower interest rates or don't bother applying. In his most explicit statement yet regarding Fed leadership, Trump declared on Friday he would only appoint someone who supports cutting rates.
Trump has been vocal about his dissatisfaction with current Fed Chair Jerome Powell, whom he blames for holding rates between 4.25% and 4.50%. The President has repeatedly called for drastic cuts to 1% and has criticized Powell, while also abandoning earlier threats to dismiss the Fed leader due to recent Supreme Court rulings.
As Powell's term end nears in May 2026, Trump is planning an early nomination to potentially influence policy direction. Names in the running include Treasury Secretary Scott Bessent, economic adviser Kevin Hassett, and Governor Christopher Waller, the latter of whom has expressed openness to rate cuts.
(With inputs from agencies.)
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