U.S. President Donald Trump said he would evaluate any new Federal Reserve chief on whether he moves quickly to cut interest rates, signaling clear expectations that his eventual nominee will take a more aggressive easing stance.
Asked by Politico whether an immediate rate cut would serve as a litmus test, Trump said, “Yes.”
He then added that current Fed Chairman Jerome Powell should do the same.
“Yes. Well, this guy should … should too,” Trump said in an interview published Tuesday (Dec. 9).
A new critique of Powell
Trump linked his comments to fresh criticism of Powell, who he originally appointed in 2018.
“I think it’s a combination of not being a smart person and not liking Trump,” the president said.
Powell’s term as Fed chairman ends in May 2026, although he remains governor until 2028. The Fed is widely expected to cut its benchmark rate by 25 basis points in Wednesday’s decision, moving from its current target range of 3.75% to 4%.
Pressure to lower rates
Earlier this year, Trump repeatedly urged the central bank to cut rates. His latest remarks signal continued pressure on monetary policy as he prepares to choose the Fed’s next leader.
Shortlist of candidates
Trump has said he has already selected his preferred candidate, but may wait until early next year to announce a decision.
Finalists under consideration include:
-Kevin Hassett, Director of the White House National Economic Council
– Fed Governors Christopher Waller and Michelle Bowman
– Former Fed Governor Kevin Warsh
-Rick Rieder, BlackRock Chief Investment Officer for Global Fixed Income
