Speaking at a rally in Des Moines, Iowa, President Donald Trump said he will soon name his nominee for the next chair of the Federal Reserve and predicted a notable drop in interest rates under that new leadership. "When we have a great Fed chairman, I think we9re going to have one. I9ll announce it pretty soon... you9ll see rates come down a lot," the president said.
Trump reiterated a position he has voiced repeatedly: that the Federal Reserve has been too slow to ease monetary policy. His comments came as Fed Chair Jerome Powell prepares to leave office when his term ends in May, and Trump indicated an announcement on Powell's successor will be made in the coming months.
During the Iowa appearance the president again criticized Powell, calling him "too late Powell." That criticism follows a recent episode in which Powell said he had been threatened with a criminal investigation by the Department of Justice over his reluctance to cut interest rates. The exchange has intensified scrutiny of the relationship between the White House and the central bank.
Analysts and market participants have expressed concern that sustained public pressure from the president could undermine the Fed's independence. The article's account notes that these concerns have already coincided with a selloff in U.S. bonds and the dollar.
Powell's incoming successor will take over at a time when the president is openly demanding more accommodative policy, according to the remarks at the rally. Beyond the timing of the appointment, the president's statements reinforce his insistence that lower interest rates are both necessary and imminent once new leadership is in place.
The president's remarks in Des Moines are the latest in a string of public comments calling for swifter and deeper rate cuts. They follow Powell's account of being threatened with a DOJ criminal inquiry tied to his approach to monetary policy, an allegation that has added to debate over the proper boundaries between political oversight and central bank independence.
Markets have already reacted to the heightened tensions, with a reported selloff in U.S. government bonds and weakness in the dollar cited in connection with concerns about political influence on monetary policy. How markets and policymakers ultimately respond to the president's forthcoming nomination and continued public pressure remains a source of uncertainty.