US President Donald Trump has made it clear that he won’t appoint a new Federal Reserve chair who won’t cut interest rates, sending a unified message from across his administration. This is the clearest signal yet to international markets that the next Fed chair will be influenced by the Oval Office.
Trump’s push for rate cuts has intensified in recent weeks, with senior officials joining the pressure campaign. Treasury Secretary Scott Bessent, who has been floated as a possible replacement for outgoing Chair Jerome Powell, has indicated he’ll do what the president wants.
The Trump administration’s efforts to cajole the Fed into cutting rates have taken on a new form, with Senate Republicans beginning to show support for rate cuts. Senator Bernie Moreno (R-Ohio) is pushing for tariffs and interest rates to be part of the conversation for whoever succeeds Powell at the Fed.
While the Fed has indicated that rate cuts are likely later this year, Trump’s demands are more aggressive than expected. The next Fed chair will face pressure from the Oval Office, with international markets taking note of this shift in monetary policy cues.
Source: https://www.axios.com/2025/06/27/trump-powell-federal-reserve-rates