Trump Promises Aggressive Rate Cuts, Teases Major Fed Chair Announcement

President Donald Trump announced a major economic shift is coming. He said he will soon name a new Federal Reserve chair. The announcement came during a national address from the White House on Wednesday night.The next chair, Trump stated, must believe in dramatically lower interest rates. This move aims to further reduce mortgage payments for Americans. He framed this as a continuation of his administration’s economic achievements.

The Push for Historically Low Borrowing Costs

Trump specifically said his chosen successor to Jerome Powell would lower rates “by a lot.” This underscores his persistent criticism of the current Fed’s policy. He has often argued for more aggressive cuts to stimulate growth.The current Fed, led by Powell, has already cut rates three times this year. According to Reuters, the benchmark rate now sits at 3.50%-3.75%. This is its lowest point since 2022, totaling a 0.75% reduction for the year.This puts the President’s vision at odds with more cautious economic approaches. Trump has previously pushed for crisis-level rates as low as 1%. His new chair would be expected to align closely with this objective.

Speculation Mounts Over Powell’s Successor

Three primary candidates have emerged as frontrunners for the role. The shortlist includes White House economic adviser Kevin Hassett. Former Fed Governor Kevin Warsh and current Fed Governor Chris Waller are also in contention.All three are seen as favoring lower rates than the present policy. However, none have publicly endorsed cuts as deep as Trump desires. The final selection will signal the administration’s economic direction for the coming years.The President hinted at his decision in a recent Wall Street Journal interview. He suggested either Hassett or Waller could get the job. Trump added that the next chair should consult him on interest rate decisions.

Angela Bassett’s Daughter Bronwyn Vance Stuns at Father’s Hollywood Star Ceremony

The upcoming Trump Fed chair announcement is poised to redefine U.S. monetary policy. Its impact on markets, inflation, and everyday borrowing costs will be immediate and closely watched globally.

Info at your fingertips

When will Trump announce the new Fed chair?

President Trump said the announcement will come “soon.” He has previously indicated a decision could be made public early next year, though no exact date was given.

Who are the top candidates for Fed chair?

The main candidates are White House adviser Kevin Hassett, former Fed Governor Kevin Warsh, and current Fed Governor Chris Waller. All are viewed as supportive of lower interest rates.

Why does Trump want to replace Jerome Powell?

Trump has consistently criticized Powell for not cutting interest rates aggressively enough. He believes significantly lower rates are needed to boost the economy and reduce mortgage costs.

How low does Trump want interest rates to go?

The President has advocated for dramatically lower rates, at times suggesting a benchmark rate as low as 1%. His stated goal is to reduce borrowing costs “by a lot.”

Will this immediately lower mortgage rates?

Not directly. Mortgage rates are influenced by long-term Treasury yields, which the Fed has limited control over. While Fed policy affects the environment, the impact is not always immediate or one-to-one.

What has the current Fed done with rates recently?

The Fed under Powell cut rates three consecutive times in 2024. The total reduction this year is 0.75%, bringing the key rate to a range of 3.50% to 3.75%.