President Donald Trump declared Friday that he won’t nominate anyone to lead the Federal Reserve unless they support steep interest rate cuts. “I’m going to put somebody that wants to cut rates,” he said, pressing for a drop from the current 4.25%-4.50% to 1%.
While past presidents have criticized Fed policy, Trump’s insistence on loyalty to his monetary stance marks a new level of political pressure on the central bank. He again lashed out at current Fed Chair Jerome Powell, calling him “stupid” and urging his resignation, claiming he’s done a “lousy job.”
Trump returned to the White House in January and has since demanded aggressive rate cuts to stimulate the economy. However, the Fed has remained cautious, citing risks of renewed inflation from Trump’s tariff policies. Policymakers have only projected a modest 0.50% cut later this year—far less than Trump wants.
Trump is reportedly vetting three to four potential replacements for Powell, whose chair term ends in May 2026. A nomination could come as early as October or November, raising concerns about a “shadow chair” undermining Powell’s authority. However, Treasury Secretary Scott Bessent, seen as a top contender, dismissed the idea, saying “I don’t think anyone’s necessarily talking about that.”
While Powell’s chairmanship ends in 2026, his board seat lasts until 2028. The next Fed vacancy opens in early 2026 when Governor Adriana Kugler’s term ends, possibly giving Trump his first chance at reshaping the board.
Other names floated include economic adviser Kevin Hassett, former Governor Kevin Warsh, and current Governor Christopher Waller—who recently signaled support for potential rate cuts in the Fed’s upcoming July meeting. The Fed’s independence, however, remains under close watch as political tensions rise.