Trump Declares He Will Replace Fed Chairman, Demands New Appointee Commit to Lowering Interest Rates

The Hague, Netherlands — At a press conference on the sidelines of the NATO summit, former U.S. President Donald Trump made a notable statement: he will appoint a new Federal Reserve Chairman — who he claims must be "fully committed" to cutting down the whales on interest rates. The information was confirmed by sources from Bloomberg and the Wall Street Journal.

"If I think someone will keep the interest rates unchanged or will not lower them, I will not appoint them. I will choose someone who wants to cut down the whales. There are many such people," Trump emphasized on Friday. Direct attack on incumbent Chairman Jerome Powell Trump continues to criticize the current Fed Chair, Jerome Powell, calling him "a stubborn and stupid mule" — an unprecedented insult from a former U.S. president to the central bank leader. When asked if he wanted Mr. Powell to resign, Trump replied bluntly: "I would be very happy if he voluntarily resigned." The tension between the two has been simmering for years and is now reaching a breaking point. Trump stated that he has "three or four" replacement candidates in mind, although he has not revealed their names. Although Powell's term lasts until May 2026, Trump has made it clear that he has no intention of waiting. Trump urged a fall of 2.5 percentage points in interest rates — far higher than the level the Fed anticipated. Trump stated earlier this month that a list of candidates to replace Powell would be announced "very soon." The Wall Street Journal revealed that he is considering accelerating this process. Information from Bloomberg indicates that immediately after Trump's statement, the Bloomberg Dollar Spot Index fell 0.2% in early Thursday trading. The USD depreciated against all major currencies worldwide — a clear market reaction to the possibility of a change in monetary policy. Some names have been rumored internally: Treasury Secretary Scott Bessent has been mentioned, although a senior official denied this information. Trump has also praised former Fed Governor Kevin Warsh as "highly regarded." However, he remains secretive about who will be chosen, only stating that it will be someone who supports cutting down the whales "fully." Trump is calling for a rate fall of up to 2.5 percentage points — far exceeding the 0.5 points that the Fed is expected to implement before the end of 2025. Currently, the federal funds rate is at 4.25%–4.5% and there are no signs that it will be cut down the whales as Trump desires. Tensions escalate ahead of the tariff deadline on 9/7 Trump continues to openly criticize Powell. On social media, he calls Powell "Too Late" (too late), mocking the caution in the Fed Chair's policies. Although Trump has previously hinted at firing Powell, he has repeatedly stated that he will not do so. Last week, after Powell's hearing before the House Financial Services Committee, Trump tweeted: "Anyway, his term is almost over!" During that hearing, Powell defended the Fed's current monetary policy, arguing that it is necessary to "wait and see" how new economic policies, especially regarding Trump's tariffs, will affect inflation. However, this cautious approach did not sit well with Trump, who is in need of quickly cutting down the whales to support his spending and trade plans. Trump is rushing to finalize trade agreements before the deadline of July 9 — the time when a series of new import tariffs could take effect without adjustments. While the Fed wants to observe more before acting, Trump is calling for decisions that are "quick, decisive, and unqualified." Summary: Donald Trump is taking an unprecedented step: publicly pressuring the Fed and preparing to replace the current Chairman — in the middle of his term. In the context of interest rates remaining high, global financial markets will closely monitor every next move of Trump and the Fed's response in the coming months.