Trump says his Fed chair pick will cut interest rates — 'He wouldn't have got the job' otherwise

There's been a lot of speculation about the Federal Reserve's independence, with President Donald Trump taking an aggressive stance against Federal Reserve Chair Jerome Powell. Recently, he criticized Powell for being "too late" to drop the benchmark rate and urged the central bank to cut interest rates. Trump claimed that despite the Fed making three cuts since September, the central bank was acting too carefully because it postponed action. In another previously televised address on December 17, Trump questioned the Federal Reserve's independence, suggesting that the next Fed chair should support significantly lower interest rates, CNBC reported. Trump has appointed Kevin Warsh as the next Fed chair to safeguard his interests.

During a recent NBC interview with “NBC Nightly News” anchor Tom Llamas, Trump remained firm on his stance for lower Fed rates. He expressed confidence in the fact that interest rates would soon be reduced, stating there was 'not much' doubt about the incoming scenario. Despite acknowledging the central bank's theoretical independence, he claimed to have better economic insight and recommended that the Fed conform to his views on the economy. Trump declared his faith in Warsh, saying, "I think he does, but I think he wants to anyway." He added, "I mean, if he came in and said, 'I want to raise them' ... he would not have gotten the job. No."

Further in the interview, Trump contended that despite high interest rates, the nation's economic growth permits reasonable debt levels. He placed a strong emphasis on cutting the federal workforce, saying that this resulted in the creation of jobs in the private sector, which he viewed as a step toward restoring America's greatness. He drew a comparison between his strategy of reducing government employment and what he believed to be the opposition party's propensity to expand government employment. 

Trump criticized Powell for not enacting more drastic rate cuts, and he picked Warsh, who is expected to successfully implement the Fed cuts. Interest rates are set by the Federal Open Market Committee, which has 12 members, including four rotating reserve bank presidents and seven permanent governors. The Fed chair does not, however, have unilateral power over interest rates. After lowering interest rates for three months, the Central Bank held them steady in January, with only two members advocating for additional cuts. Powell justified the Fed's actions, claiming that they are grounded in the state of the labor market and inflation.

However, Trump wasn't pleased with the steady rates, and he asserted that there is currently low inflation and significant economic growth, noting a 1.2% inflation rate over the last three months. He emphasized the need to reduce interest rates to further accelerate the economy. According to The Wall Street Journal, Trump claimed in a December 2025 interview that he wanted interest rates to be at 1% or lower, claiming that rate reductions might ease the financing load of $30 trillion in government debt for the U.S. Treasury.

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