On Monday, President Trump took another jab at Federal Reserve Chairman Jerome Powell, criticizing him in a memo that included a list of global central bank interest rates. “Jerome, you’re, as always, ‘too late.’ You’re costing the U.S. a lot of money,” he remarked.
During a White House briefing, Trump pointed out a column that ranked interest rates from lowest to highest, a detail shared by Press Secretary Caroline Leavitt. He also shared a post on his social media, claiming that being a central banker in the U.S. is “one of the easiest yet most honorable jobs in America, and they have failed… We should only pay 1% interest!”
Trump criticized Powell and the Federal Reserve, suggesting they should be “ashamed of themselves.” The Fed has kept its interest rate steady between 4.25% and 4.5% since December, even as inflation has surpassed the 2% target—a situation that has frustrated Trump, who has even hinted at the possibility of firing Powell before his term ends in 2026.
In the meantime, Treasury Secretary Scott Bescent, who may succeed Powell, has started outlining plans regarding the next Fed chair. On Monday, he mentioned a broader discussion about transitioning power within the Fed rather than trying to influence monetary policy through early appointments.
Governor Adriana Coogler’s term expires on January 31, 2026, presenting an opportunity for Trump to nominate someone for a full 14-year term. “The seats are open, and the 14-year seats are available in January, so we thought perhaps the new appointee could assume the chair when Jay Powell steps down in May,” Bescent added.
Powell’s term as chairman wraps up next May, while his own position on the board extends until January 31, 2028. He’s not required to leave the Fed committee once his chairmanship concludes, although historically, many have done so. His and Coogler’s positions are the only board spots expiring during Trump’s term.
Bescent noted that several current board members are in the running to replace Powell. “It’s clear there are people currently on the Fed considering this, so the confusion about adding another candidate in January is unnecessary,” he commented.
Governor Christopher Waller, whom Trump appointed during his first term, is reportedly looking at his future role. Waller recently expressed a desire to see interest rate cuts implemented by the Fed’s next meeting in late July. Others being mentioned as potential candidates include Trump’s economic advisor Kevin Hassett and former Fed Governor Kevin Wahsh.
On Friday, Trump made it clear that he would not appoint anyone to lead the central bank who does not support immediate interest rate cuts.
Overall, while Fed officials still represent a minority, their ranks seem to be growing, and the upcoming policymakers’ meeting is set to address the interest rate cut proposals. Recently, Goldman Sachs analysts have adjusted their forecast to expect interest rate reductions by September, stating that the impact of Trump’s tariffs on inflation has been slightly less than expected.
Goldman anticipates cuts totaling three-quarters this year and has lowered its “terminal rate forecast” from 3.5% to 3.75%. The analysts noted that employment data, if weaker than anticipated, could influence these projections after the Fed’s July meeting.
The Fed will receive new employment data this Thursday for June, which may indicate trends in the labor market. There will also be fresh inflation figures released next week. Notably, July 9th stands out since some of Trump’s tariff suspensions are set to expire, leaving uncertainty about future import taxes or whether negotiations will pause.
Atlanta Federal Reserve President Rafael Bostic observed on Monday that central banks have mostly refrained from aggressive interest rate cuts this year, but he emphasized that there’s no apparent urgency given the prevailing uncertainty. “I think we have a luxury of patience since the labor market remains solid,” Bostic said at an event, suggesting that more price adjustments are forthcoming.
With post wire
