Trump stated that he will announce his pick for the Federal Reserve Chair tonight, Beijing time. In earlier remarks, he noted that he expects the new chair to advocate for interest rate cuts. He strongly urged that rates “should be lowered by another 2 to 3 percentage points” to achieve the "lowest in the world."
U.S. President Trump recently stated that he will announce the nominee for Chair of the Federal Reserve tomorrow morning local time (this evening Beijing time). He reiterated his expectation that the new leadership of the Fed would lower interest rates.
Notably, this timing differs from what he had previously mentioned.
Trump said during a White House cabinet meeting on Thursday: 'We will make the announcement next week, and we will name the person who I believe will do a great job as the Chair of the Federal Reserve.'
The Federal Reserve's decision on Wednesday to keep borrowing costs unchanged has reportedly displeased Trump. Trump and his allies have been mounting pressure on the Federal Reserve and its current Chair Jerome Powell for months, including an investigation by the Department of Justice into the renovation of the Fed's headquarters. This move drew criticism that Trump is undermining the institution’s ability to independently set interest rates without political pressure.
“The interest we are paying is too high,” Trump said on Thursday. “We should have the lowest interest rates in the world. Interest rates should be two or even three percentage points lower.”
It is reported that Trump is considering four candidates on his final shortlist: Kevin Hassett, Director of the National Economic Council, Christopher Waller, a member of the Federal Reserve Board, former Governor Kevin Warsh, and Rick Rieder, an executive at Blackrock. The selection process is being overseen by Treasury Secretary Scott Bessent.
Whoever Trump chooses may face hurdles during the confirmation process in the U.S. Senate. Senator Thom Tillis, a member of the Banking Committee, has vowed to block any Fed nominee put forward by Trump until the Department of Justice investigation into the Fed is resolved.
The Federal Reserve cut interest rates three times consecutively in the last few months of 2025. Officials noted in this week’s FOMC statement that signs of stabilization in the labor market and persistently high inflation were factors contributing to the decision to pause rate cuts.
Powell declined to comment on the Department of Justice investigation during the subsequent press conference. He also stated that he does not believe the central bank will lose its independence and offered some advice to his successor. 'Do not get involved in electoral politics. Just don’t do it,' he said.
“We should drastically lower interest rates now because even this moron admits that inflation is no longer a problem or threat,” Trump fiercely criticized Powell in a post on Truth Social the day after the Fed meeting.
Trump wrote: "He is costing the United States hundreds of billions of dollars every year in completely unnecessary and avoidable interest payments. Due to the inflow of substantial funds into our country as a result of tariffs, we should be paying the lowest interest rates of any country in the world." He further added that Powell is undermining U.S. national security.
Editor/Liam