President Donald Trump said on “The Conversation with Dasha Burns” Tuesday that he would only pick a Federal Reserve chair who would promptly reduce interest rates.
Federal Reserve Chair Jerome Powell’s term ends in May 2026 and he has reportedly indicated that he intends to serve until then despite pressure from Trump. When Burns asked on the podcast whether it was “a litmus test that the new chair lower interest rates immediately,” Trump responded, “Yes.”
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“Well, this guy [Powell] should too. But I think he’s a combination of not a smart person and doesn’t like Trump,” the president said. “But the reason he doesn’t like Trump is because I hit him hard because he’s doing a bad job … We’re fighting through interest rates. Look, he’s a negative, but this country is doing so well.”
Trump has repeatedly condemned Powell for not lowering interest rates during his administration. He has also pushed for Powell’s resignation because of the Fed’s refusal to cut rates.
National Economic Council Director Kevin Hassett is reportedly the frontrunner to replace Powell. He told Fox News in November that he would “be cutting rates right now” if he were Fed chair.
Moreover, Trump in August ruled out Treasury Secretary Scott Bessent as a potential choice to replace Powell on CNBC’s “Squawk Box.”
“I love Scott, but he wants to stay where he is,” Trump said. “I will — I’ll take him off the … because I asked him just last night, ‘Is this something you want?’ ‘Nope. I want to stay where I am.’ He actually said, ‘I want to work with you. It’s such an honor.’ I said, ‘That’s very nice. I appreciate that.’”
“But no, Scott wants to do what he’s doing. He’s doing a great job and he wants to do what he’s doing,” he continued. “So I just take him off. He does not want it. He likes being Treasury secretary. He’s doing a really good job.”
Trump also sparred with Powell in July over costs for the Fed’s building project. Powell shook his head when the president surprised him with comments regarding a cost estimate of $3.1 billion, which was substantially higher than previous estimates of $2.5 billion for the renovation of the agency’s headquarters published in media reports
Trump also fired Federal Reserve Governor Lisa Cook for alleged mortgage fraud in August, but she was reinstated. The Supreme Court decided in October to let Cook remain on the board until at least January when the justices will weigh the Trump administration’s request to remove her during oral arguments, according to the court’s order.
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