Washington, D.C. – United States President Donald Trump has sent a strong signal regarding the next chairman of the Federal Reserve, stating that anyone who disagrees with him on interest rate policy will not be considered for the role. Trump’s comments come amid the ongoing search to replace outgoing Fed chief Jerome Powell, who has clashed with the president over monetary policy decisions.

Trump Pressures Fed to Keep Rates Low

On Tuesday, while interviewing candidates for the Fed chairman position, Trump reiterated that he expects the next head of the central bank to prioritize low interest rates.

“I want my new Fed Chairman to lower interest rates if the market is doing well, not destroy the market for no reason whatsoever,” Trump wrote on his social media platform, Truth Social.
“The United States should be rewarded for SUCCESS, not brought down by it. Anybody that disagrees with me will never be the Fed Chairman!”

Since returning to office in February, Trump has repeatedly pressured the Federal Reserve to cut interest rates in a bid to stimulate economic growth.

Background on Jerome Powell and Fed Policy

Powell has faced intense scrutiny from the White House for maintaining interest rates higher than Trump preferred, arguing that the economy could withstand gradual adjustments without overheating. Trump has publicly criticized Powell, calling him a “numbskull” and a “major loser” for failing to cut rates aggressively.

The Fed has already reduced its benchmark interest rate three times this year, bringing it to 3.5–3.75 percent as of mid-December. However, Trump has pushed for rates as low as 1 percent, a move that could boost consumer spending but risk higher inflation if implemented too rapidly.

Implications for Federal Reserve Independence

Trump’s statements have sparked concerns among economists and market watchers about the potential politicization of the Fed. The central bank’s independence has long been a cornerstone of U.S. economic policy, designed to prevent short-term political considerations from influencing long-term monetary decisions.

“The statement in the final weeks of Powell’s successor selection focuses attention on which of the finalists will do what Trump wants,” said Mark Sandel, chief investment officer at Potomac River Capital and Federal Reserve historian.
“It’s really about who can convince Trump that their way aligns with his interests.”

Top Candidates to Replace Powell

According to reports, key candidates for the Fed chair include:

• Kevin Hassett, director of the National Economic Council (NEC)
• Kevin Warsh, financier and former Fed governor
• Christopher Waller, current Fed governor

Hassett has publicly advocated for further rate cuts, even as recent economic data show stronger-than-expected U.S. growth. The Commerce Department reported 4.3 percent GDP growth for the third quarter of 2025, exceeding analyst predictions of 3.2 percent, fueled largely by consumer spending and exports.

Sandel believes Hassett is the frontrunner due to his longstanding relationship with Trump and his ability to communicate complex economic concepts in a way that resonates with the president.

“Of the finalists, my money’s on Kevin Hassett,” Sandel said.
“He can teach Trump economics while also evangelizing Trump’s own unique ideas.”

Market Reactions and Economic Outlook

Investors and economists are closely monitoring the Fed chair selection process, aware that the new chairman’s approach to interest rates could have significant implications for the stock market, borrowing costs, and inflation.

Trump’s preference for a compliant Fed chairman raises questions about the central bank’s ability to make independent decisions in the future, particularly if political considerations outweigh economic prudence.

“The independence of the Federal Reserve is vital for maintaining confidence in U.S. economic policy,” Sandel noted.
“Any perception that the Fed is bowing to political pressure could unsettle markets both domestically and internationally.”

Conclusion

As the search for Jerome Powell’s successor continues, Trump’s comments make it clear that the next Federal Reserve chairman will be closely aligned with his vision for interest rate policy. Analysts predict that the decision will have far-reaching consequences for the U.S. economy, financial markets, and the credibility of the Federal Reserve as an independent institution.