Trump increased pressure to urge the Fed to cut interest rates: he is considering Powell's successor, "it will be out soon"
According to Bloomberg, U.S. President Trump increased pressure on Federal Reserve Chairman Powell on the 6th local time. He posted on social media urging the Federal Reserve to cut interest rates "a full percentage point." The report said that Trump also revealed to reporters that he was considering the next candidate for the Federal Reserve Chairman, "it will be released soon."
"Mr.''Taichi' is a disaster in the Fed!" Trump posted on social platforms on the 6th about Powell's nickname. Despite this, "our country still performs well. Come on, strive for a full percentage point!"
Trump told reporters on Air Force One later that day that he was considering Powell's successor and "will be released soon", but did not disclose any potential candidate's names. The report mentioned that Powell's term will end in May 2026.
Bloomberg said that although the rate cut Trump asked for — a full percentage point — was unusual, his call for the Fed to cut interest rates is not new.
Previously, Trump urged the Federal Reserve to cut interest rates many times, while the Federal Reserve said that Powell insisted on independent monetary policy formulation. According to the Financial Times in May, the two held a closed-door meeting on the 29th of that month. According to a statement released by the Federal Reserve, Powell was invited to the White House to discuss "economic development, including economic growth, employment and inflation." The statement said Powell "has not discussed his expectations for monetary policy, but emphasized that the policy path will depend entirely on the upcoming economic information and its impact on the prospects." Powell also told Trump that the Fed Chairman and his colleagues "will formulate monetary policies in accordance with the law to ensure the fullest employment and price stability, and will make decisions based entirely on meticulous, objective and without political inclination."
Source: Global Network/Zhang Xiaoya
