WASHINGTON (TNND) — President Donald Trump said he is poised to announce his pick to replace Federal Reserve Chair Jerome Powell, adding that interest rates will significantly drop as soon as a new Fed chair is at the helm.
“By the way, when we have a great Fed chairman — I think we’re going to have one — I’ll announce it pretty soon. You’ll see rates come down a lot,” Trump said during an event in Iowa on Tuesday.
Trump’s statement comes as Federal Reserve officials are expected to keep interest rates unchanged on Wednesday, despite pressure from the White House to lower borrowing costs.
The Fed cut rates three times in 2025 to protect the economy after hiring slowed, but officials now see signs that the job market has stabilized and growth may be improving. Inflation is still above the Fed’s 2% goal, giving policymakers reason to wait.
In December, just 12 of the 19 participants in the committee’s meetings supported at least one more rate cut this year. Most economists forecast the Fed will cut twice this year, most likely at the June meeting or later.
Powell is likely to face questions about how long rates will stay on hold. Some officials want to wait until inflation falls more, while others favor more cuts to support hiring.
Trump has continuously criticized Powell and floated replacing him when his term ends in May. The announcement could come as soon as this week, though it has been delayed before.
For now, many Fed policymakers remain cautious about cutting rates again. Consumer confidence, however, is weak, hitting an 11-year low in January as job growth remains sluggish.
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EDITOR’S NOTE: The Associated Press contributed to this report.