Donald Trump recently stated that the Federal Reserve should pay attention to him as he considers candidates for the bank’s leadership. He’s particularly interested in former Fed governor Kevin Warsh to take the chair.
Current chair Jerome Powell’s term ends in May, and Trump has been vocal against his cautious approach to interest rate cuts. This tension has fueled Trump’s criticism of the Fed, leading to a campaign for more influence over its decisions.
Trump is also looking at his adviser Kevin Hassett, head of the National Economic Council, as a potential candidate. “The two Kevins are great,” he mentioned in an interview with the Wall Street Journal. He indicated he would soon appoint a new chair, as he has been frustrated with the Fed’s slow response to rate cuts since he took office earlier this year.
According to Trump, Warsh agrees with him on the need to lower rates, which is something the president has pushed for quite some time. He emphasized the importance of listening to him regarding future rate decisions, noting, “I’m a smart voice and should be listened to.”
This week, the Fed did cut rates by a quarter point, marking their third cut this year. However, officials showed hesitation about making further cuts next year due to rising economic uncertainties. Jerome Powell explained that the Fed is navigating a tricky landscape, balancing risks in the job market against inflation pressures that stem from Trump’s tariffs.
Interestingly, public opinion on these rate cuts is mixed. A recent survey found that over 60% of Americans feel the Fed should maintain lower rates to support economic growth. As debates about the economy continue on social media, opinions vary widely, reflecting the divided views on Trump’s influence over national financial policy.
For more insights on recent Fed actions, check out this Guardian article.
