Trump’s Message To Next Fed Chair
President Donald Trump said Friday that whoever he chooses as the next chairman of the Federal Reserve should be open to consulting with the White House on interest rate policy — a practice he says was once standard and should be restored.
In an interview with The Wall Street Journal, Trump said he is seriously considering two candidates for the influential position: National Economic Council Director Kevin Hassett and former Federal Reserve Board Governor Kevin Warsh.
While Trump stressed that the Federal Reserve should maintain its independence, he argued that major economic decisions — especially those affecting inflation, borrowing costs, and retirement savings — should reflect input from elected leadership.
“Typically, that’s not done anymore,” Trump said. “It used to be done routinely, and it should be done. I’m not saying the chairman should do exactly what we say, but I am a smart voice and should be listened to.”
Trump Pushes for Lower Interest Rates
Trump reiterated his long-held position that interest rates in the United States remain too high, particularly for homeowners, small businesses, and retirees living on fixed incomes.
He said he would like to see rates near 1 percent — or possibly even lower — by this time next year, arguing that lower borrowing costs would help stabilize the economy and reduce financial pressure on American families.
“We should have the lowest interest rate in the world,” Trump said.
Lower interest rates can influence a wide range of economic factors, including mortgage payments, auto loans, credit card interest, business investment, and the value of retirement portfolios. Supporters of rate cuts argue they stimulate growth, while critics warn they could fuel inflation.
Fed Leadership Uncertainty Ahead
Trump has repeatedly criticized current Federal Reserve Chair Jerome Powell over what he views as a cautious approach to cutting rates. Powell, who was originally nominated by Trump during his first term, is scheduled to see his term as chair expire next May.
Earlier this week, the Federal Reserve approved a quarter-point interest rate cut following a closely divided vote. The decision came amid ongoing debate within the central bank about balancing inflation concerns with employment growth and economic stability.
As Trump weighs his next move, the future direction of U.S. monetary policy remains a major issue for investors, retirees, and voters alike — especially as Americans continue to navigate higher prices, fluctuating markets, and long-term financial planning.
