Trump says he'll expect next Fed chair to cut rates

President Trump has made it clear that he will not appoint a new Federal Reserve chair who is not willing to cut interest rates. This signals to international markets that the next Fed chair will take monetary policy cues directly from the Oval Office. Trump has been pushing current Fed chair Jerome Powell to cut rates, but the Fed has only indicated that rate cuts are likely later this year, which is not fast enough or deep enough for Trump. Trump stated that he will not put someone in the position who wants to keep rates where they are, and instead will choose someone who wants to cut rates. Administration officials have hinted that they could name a new chair before Powell's term expires in May 2026 to raise pressure on him and the Fed. Treasury Secretary Scott Bessent suggested that a new chair could be nominated as soon as October, and he himself has been floated as a possible replacement for Powell. Bessent stated that he will "do what the president wants" regarding the matter. Trump's stance has significant implications for the Federal Reserve's independence and its ability to make monetary policy decisions. The president's influence over the Fed could have far-reaching consequences for the economy and financial markets. Overall, Trump's comments have made it clear that he wants a Fed chair who will follow his lead on monetary policy.