Wed Dec 24 06:44:05 UTC 2025: ## Trump Seeks Fed Chief Aligned with His Low-Rate Vision, Raising Independence Concerns
Washington D.C. – As current Federal Reserve chief Jerome Powell’s term nears its end, President Donald Trump has publicly declared his intention to appoint a successor who aligns with his desire for lower interest rates, a stark departure from Powell’s stance and a move that has sparked fears about the Fed’s future independence.
In a recent post on his Truth Social platform, Trump stated he wants a new Fed Chairman to “lower Interest Rates if the Market is doing well,” adding, “Anybody that disagrees with me will never be the Fed Chairman!” This statement underscores his continued pressure on the central bank to aggressively cut rates to boost the US economy, a policy he has advocated for since returning to office.
Critics argue that Trump’s overt demands threaten the long-standing convention of the Federal Reserve operating independently from political influence. While lower interest rates can stimulate economic activity by making borrowing cheaper, moving too quickly or drastically can lead to inflation.
Michael Sandel, chief investment officer at Potomac River Capital and a Federal Reserve historian, commented on the situation, saying, “the statement in the final weeks of Powell’s successor selection focuses attention on which of the finalists will do what Trump wants.”
Among the leading candidates to replace Powell are Kevin Hassett, former director of the National Economic Council; Kevin Warsh, a financier and former Fed governor; and Christopher Waller, a current Fed governor. Hassett has publicly supported further interest rate cuts, even amidst recent positive economic indicators, including a higher-than-expected 4.3% GDP growth for the third quarter of 2025.
Sandel believes Hassett is the frontrunner due to his existing relationship with Trump, highlighting his ability to “teach Trump economics and evangelise Trump’s own inimitable ideas.”
The selection of Powell’s successor is being closely watched by economists and policymakers, as it could significantly impact the direction of US monetary policy and the perceived independence of the Federal Reserve. The outcome will undoubtedly have far-reaching consequences for the US economy and global markets.
First Piper 