Trump declares: The next Federal Reserve Chairman must support interest rate cuts

According to the Zhitong Finance APP, U.S. President Donald Trump stated that he would choose someone willing to lower interest rates to replace Jerome Powell as Chairman of the Federal Reserve, a condition that would severely undermine the Fed's independence. Trump said on Friday, "If I think someone will keep interest rates unchanged or whatever, I won't choose him. I will choose those who want to lower interest rates. There are many such people." Trump has intensified his criticism of Powell due to the Fed's decision to keep interest rates unchanged. Trump stated, "If he wants to resign, I would be happy." He referred to the central bank governor's lack of support for rate cuts as "a stubborn mule, a stupid person." Trump has pressured the Fed to cut rates and has repeatedly criticized Powell, believing that the Fed's policies have led to excessively high government borrowing costs. Powell's term as chairman will last until May next year. Trump has previously stated that he has three to four people in mind to succeed Powell, but U.S. Treasury Secretary Scott Basset downplayed speculation about Trump's early nomination of the next Fed chairman. Basset said on Friday that Trump might announce his nominee later this year—considering that the next vacancy on the board will occur in January next year—with the aim of having the nominee serve as chairman. Basset stated, "The chairman's nominee could be appointed in January next year, which means the nomination could take place in October or November." Powell's term as a Fed governor will last until 2028. Trump's remarks could further undermine the concept of Fed independence. At two public events on Friday, Trump criticized Powell, fully expressing his dissatisfaction with the central bank governor. Fed officials indicated last week that they expect to lower borrowing costs by 0.5 percentage points by the end of the year, which means two rate cuts of 25 basis points each. Several policymakers stated this week that they need a few more months of data to be sure that tariffs will not lead to sustained inflation, which has reduced expectations for a rate cut at the Fed's next meeting in July. The Fed maintained its interest rate in the range of 4.25%-4.5% last week, a level it has held since the beginning of the year. Powell told lawmakers this week that if it weren't for the uncertainty in future price prospects caused by tariffs, the Fed might have already begun to cut rates based on declining inflation. Meanwhile, the Fed currently sees no need to rush to adjust rates. Data released on Friday showed that U.S. inflation remained moderate in May, but many economists expect that as more businesses pass higher import tariffs onto households, inflation rates will rise in the coming months