Trump accuses Powell of keeping interest rates "artificially high"

President Trump has accused Federal Reserve Chairman Jerome Powell of artificially inflating interest rates, stating they should be less than half of the current rate. Trump made these comments during an interview on Fox News' "Sunday Morning Futures," where he also criticized Powell personally. The president believes interest rates should be at 1% or 2%, significantly lower than the current target range of 4.25% to 4.5%. Trump's threats to fire Powell have previously caused interest rates to spike and scared global bond markets. Instead of making threats, the president and his administration have turned to insults and public demands to exert pressure on the Federal Reserve. Trump has stated that he would not appoint a new Fed chair unless they would immediately cut interest rates, signaling the White House's intention to exert more control over monetary policy. Treasury Secretary Scott Bessent has suggested that a replacement for Powell could be nominated as soon as October, despite Powell's term running through next May. This has raised the prospect of a "shadow" Fed chair, where the market may have to take conflicting cues from two different officials. Trump has mentioned that he has three names in mind for the next chair but declined to reveal them, although he did praise former Fed governor Kevin Warsh as a talented individual. The president's comments and actions have created uncertainty and intrigue surrounding the future of the Federal Reserve and its leadership.