Trump on Fed Chair: Rate Cut Pledge
- President Donald Trump is seeking a new Federal Reserve chair who will aggressively cut U.S.
- Trump told reporters at the Oval Office that his nominee to replace Powell would be someone committed to lowering rates.
- The president has repeatedly voiced his disapproval of the Fed's decision to maintain rates at 4.25-4.5% this year, halting a cutting cycle that began in 2024.
Donald Trump intensifies pressure on the Federal Reserve, demanding a new chair committed to slashing interest rates to a mere 1%. This decisive move, coupled with growing criticism of current chair Jay powell, signals a significant shift in monetary policy strategy. Potential candidates, including Waller, Hassett, and bessent, are now in the spotlight for the crucial Fed ROLE. News Directory 3 provides this breaking analysis, examining Trump’s unprecedented influence on the Federal Reserve’s inner workings.Experts debate the feasibility, with some cautioning against such aggressive intervention. The future of the U.S. economy hangs in the balance as the search for a new chair intensifies. Discover what’s next regarding the Federal Reserve and the impact of potential new policies.
Trump Seeks Fed Chair to Slash Interest Rates to 1%
Updated June 28, 2025
President Donald Trump is seeking a new Federal Reserve chair who will aggressively cut U.S. interest rates, advocating for a target of 1%. This comes amid renewed criticism of current chair Jay Powell, whom Trump has called a “stubborn mule,” suggesting he would welcome Powell’s resignation. Powell’s term is set to end in May 2026.
Trump told reporters at the Oval Office that his nominee to replace Powell would be someone committed to lowering rates. “Whoever’s in there will lower rates,” Trump said. “If I think someone is going to keep rates where they are I’m not going to put them in.” This marks the latest in a series of unprecedented attacks by a U.S. president on the head of the central bank.
The president has repeatedly voiced his disapproval of the Fed’s decision to maintain rates at 4.25-4.5% this year, halting a cutting cycle that began in 2024. Trump believes rates should be at 1% and has instructed his governance to limit debt beyond nine months until a new chair is in place. Despite this, the Treasury is expected to sell long-dated bonds soon.
Trump mentioned having a shortlist of three or four candidates for the Fed ROLE, though the White House indicated that a decision is not imminent. This pressure on Powell has fueled speculation about a potential “shadow Fed chair” who aligns with Trump’s desire for rapid rate cuts to boost economic activity and manage the federal reserve.
Christopher Waller, a current Fed governor, is considered a potential replacement for Powell and has supported a rate cut as early as July. Kevin Hassett, who heads the national economic Council, also favors lower borrowing costs. Treasury Secretary Scott Bessent has pointed to two-year Treasury note yields as justification for Fed rate cuts. Former Fed governor Kevin Warsh, another potential candidate, is seen as more hawkish, prioritizing the fight against inflation.
However, some experts believe this strategy could backfire. Robert Barbera, an economist at Johns Hopkins University, stated, “Although it sounds like a clever idea, it doesn’t hold up. The reason is because the Fed’s not a kingship.”
The Fed chair influences interest rates alongside 18 other members of the Federal Open Market Committee, with 11 members holding a vote.Jon Faust, a former special adviser to powell, also at Johns hopkins, suggested that a new chair attempting to exert undue influence could damage relationships within the committee, diminishing their overall impact.
“Even though it sounds like a clever idea, it doesn’t hold up,” said robert Barbera, an economist at Johns Hopkins University. “The reason is as the Fed’s not a kingship.”
What’s next
The coming months will reveal whether Trump nominates a candidate aligned with his views on monetary policy and how the Federal Reserve navigates potential political pressure while maintaining its independence in setting interest rates and managing the economy. The Federal Reserve chair plays a crucial ROLE in shaping economic policy.