Trump Insists Fed Chair Must Support Interest Rate Cuts

President Donald Trump has made it clear that he will only appoint a Federal Reserve chair who supports significant interest rate cuts, emphasizing his desire for rates to be lowered to around 1%. He has openly criticized current Fed Chair Jerome Powell for maintaining higher rates, calling him "stupid" and expressing a wish for Powell to resign. Trump’s stance represents a more direct intervention in Fed leadership selection than seen in recent history, underscoring his push for aggressive monetary easing despite Fed officials' cautious approach due to inflation concerns tied to his tariff policies. While the Fed has signaled modest rate cuts later this year, these fall far short of Trump's demands, leading to speculation about potential new appointees who align with his views. This approach raises questions about the Federal Reserve's independence and could have significant implications for global financial markets and monetary policies worldwide. Trump reportedly has a shortlist of candidates who favor rate cuts, with some current officials backing earlier easing measures.