Overview

• Trump said he will only appoint a Fed chair who pledges to lower interest rates from the current 4.25%–4.50% level to as low as 1%.
• He publicly labeled Jerome Powell “stupid” and a “stubborn mule,” encouraging the Fed chair to resign over what he calls a failure to act fast enough.
• The White House is considering an unprecedented early nomination that would install a “shadow” Fed chair before Powell’s term ends in May 2026.
• The Federal Reserve has held its benchmark rate steady this month as officials weigh inflation risks and economic uncertainties.
• The dollar slid to a three-year low and potential successors under vetting include Kevin Hassett, Kevin Warsh, Christopher Waller and Scott Bessent.