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Trump-I-will-choose-a-Fed-chairman-who-wants-to-cut-interest-rates

Source:BloombergUS President Donald Trump said he would choose a successor to Federal Reserve Chairman Jerome Powell who is willing to lower interest rates, a condition that would undermine the central bank's independence.
Trump told reporters on Friday, "If I thought somebody was going to keep interest rates where they are, I wouldn't appoint them. I'd appoint somebody who wants to lower them. There are a lot of them."
The president escalated his criticism of Powell over the Fed's decision to hold rates steady. Trump said, "I wish he would resign if he wanted to." He described the central bank chairman as a "stubborn, stupid person" for not supporting lowering interest rates.
Trump is considering four candidates to replace Powell.
Trump has been pressing the central bank to lower interest rates, repeatedly attacking Powell and arguing that the Fed's policies are keeping government borrowing costs too high.
Powell's term as Fed Chairman continues until May of next year. He stated that he is considering three or four candidates to succeed Powell, but Treasury Secretary Scott Bessant downplayed speculation that the president might consider a quick move.
Despite Trump's pressure, Fed Chairman: No urgent need to cut interest rates now
Bessant indicated on Friday that Trump could announce his choice later this year before the next board meeting, scheduled for January, with the goal of having that person serve as chairman.
"There's a possibility that whoever becomes chairman will be appointed in January, which would likely mean a nomination in October or November," Bessant told CNBC. Powell's term on the board, separate from his position as governor, runs until 2028.
Undermining the Fed's IndependenceTrump's statements threaten to undermine the previously well-established notion of the Fed's independence. Trump criticized Powell during his two public appearances on Friday, highlighting his deep anger with the central bank chairman.
"We have a Fed official who doesn't understand what's going on," he said. Trump also described Powell as a "very stupid person" with a "low IQ for what he does" during a press conference earlier this week during the NATO leaders summit.