Trump Announces Countdown for Federal Reserve Chair Change
On December 29th, U.S. President Trump sent a major signal, clearly stating that he expects to announce the nomination for the next Chair of the Federal Reserve in January. The current Chair, Jerome Powell, is set to finish his term in May 2026. With the timeline for the transition emerging, the long-standing tension between the White House and the Federal Reserve is once again at the forefront of public discussion. After meeting with Israeli Prime Minister Netanyahu in Florida, Trump candidly told the media that although he would very much like to fire Powell immediately, considering his term is nearing its end, the options for administrative measures have shifted.
Interest Rate Policy Clash: White House Discontent with Rate Cut Scale
Since taking office for the second time in January 2025, Trump has consistently considered rate cuts as central to his economic plans. He believes the Federal Reserve should adopt a more aggressive monetary easing policy to boost industrial output and effectively reduce the U.S. government's substantial interest payments on debt. Although the Federal Reserve has implemented three rate cuts in 2025, including the latest reduction at the December 10th meeting, Trump feels these efforts are far from sufficient. He has publicly criticized Powell as being "stubborn," insisting that the latest rate cut should have been doubled, if not more. This overt interference with the independence of monetary policy has heightened market attention on the future direction of U.S. economic policies.
Successor Emergence and Heightened Legal Threats
Regarding the successor at the Federal Reserve, Trump has identified several key figures as potential candidates. He clearly stated in an interview that former Fed governor Kevin Warsh is currently the leading candidate, with White House National Economic Council Director Kevin Hassett also showing outstanding performance. However, while progressing with this personnel transition, Trump has not ceased his personal attacks on Powell. Besides the differences in macroeconomic policy, Trump has also criticized the costly renovation project for the Federal Reserve's headquarters, accusing Powell of "gross incompetence" in managing the building's refurbishment and threatening that the White House might formally sue over it. This reflects Trump's attempt to reshape the future policy stance of the Federal Reserve through both legal pressure and administrative changes.
