Trump Says He Will Only Appoint Fed Chair Who Wants To Cut Interest Rates

President Donald Trump stated that he may appoint a new Federal Reserve Chair who is more inclined to lower interest rates, replacing Jerome Powell. Trump criticized Powell for not lowering interest rates and suggested that he would "love" it if Powell stepped down. The president believes that lowering interest rates to 1% could save the country hundreds of billions of dollars annually. The Federal Reserve decided to keep interest rates unchanged at 4.25-4.50% last week, citing the need for more clarity on the economy. Powell has held off on cutting interest rates, waiting to see if Trump's global tariffs will result in consumer inflation. Trump suggested that the Fed could raise rates later if inflation increases, but for now, he wants to see lower rates. The president may decide on Powell's successor soon, with Treasury Secretary Scott Bessent being a possible nominee. Bessent indicated that he would prefer to stay in his current role but would do what the president wants. Trump believes that cutting interest rates by two percentage points would save the country more than $600 billion annually. Powell stated that the central bank may begin cutting interest rates if inflation pressures remain contained.