Overview
- Trump declared on Truth Social that his next Federal Reserve chair must lower interest rates when markets are performing well and warned that anyone who disagrees will not get the job.
- White House economic adviser Kevin Hassett said the U.S. is "way behind the curve" on cutting rates as Q3 growth hit 4.3%, reinforcing his dovish stance as betting markets place him ahead of Kevin Warsh.
- Jerome Powell’s term ends in May 2026, and Trump has signaled an announcement within weeks after narrowing his shortlist, which includes Hassett, Warsh, and interviewed governor Christopher Waller.
- The Fed has cut rates by 25 basis points at three straight meetings to a 3.50%–3.75% target range, with a rare 9–3 split featuring dissents for a larger cut and for holding steady.
- Institutional tensions remain in focus as the Supreme Court is set to hear arguments in January on Trump’s effort to remove Fed governor Lisa Cook.