Trump Sets Strict Condition for Selecting US Fed Chair
US President Donald Trump said he would not allow anyone to become chair of the Federal Reserve if they disagreed with him on monetary policy, signaling his intention to exert direct influence over the central bank’s direction in the coming period.
Posting on his Truth Social platform, Trump said markets tend to fall after positive data because investors believe the Fed will rush to raise interest rates to counter potential inflation, arguing that such policies harm markets without real economic justification.
He stressed that he wants a new Fed chair who would cut interest rates when markets are performing well, rather than intervening in ways that, in his view, weaken markets unnecessarily.
Trump added that inflation could be addressed naturally through continued economic growth without aggressive policy moves, emphasizing that rate hikes should be a last resort and taken only at the right time.
He also argued that halting market rallies now would be inappropriate, saying such rallies could boost US GDP growth by between 10 and 20 points annually.
The remarks come as markets closely watch signals on the future path of interest rates and the role of the Federal Reserve, reigniting debate over central bank independence.
Posting on his Truth Social platform, Trump said markets tend to fall after positive data because investors believe the Fed will rush to raise interest rates to counter potential inflation, arguing that such policies harm markets without real economic justification.
He stressed that he wants a new Fed chair who would cut interest rates when markets are performing well, rather than intervening in ways that, in his view, weaken markets unnecessarily.
Trump added that inflation could be addressed naturally through continued economic growth without aggressive policy moves, emphasizing that rate hikes should be a last resort and taken only at the right time.
He also argued that halting market rallies now would be inappropriate, saying such rallies could boost US GDP growth by between 10 and 20 points annually.
The remarks come as markets closely watch signals on the future path of interest rates and the role of the Federal Reserve, reigniting debate over central bank independence.
