Rate cut war: Donald Trump narrows choice for next US Fed chair to ‘three or four people'; calls Jerome Powell ‘terrible'
US President
Donald Trump
called Federal Reserve Chair Jerome Powell 'terrible' and said he had narrowed down his choice for the next Fed chair to 'three or four people,' stoking fresh speculation about an early leadership change at the central bank.
'I know within three or four people who I'm going to pick,' Trump told reporters, when asked if he was interviewing candidates to succeed Powell, whose term ends in May 2026.
According to a Reuters report, the list of leading contenders includes former Fed Governor Kevin Warsh, current Governor Christopher Waller, Treasury Secretary Scott Bessent, and National Economic Council director Kevin Hassett.
Trump has repeatedly attacked Powell for not moving fast enough to cut interest rates, even threatening to fire him — a move many legal experts say would breach the Fed's independent mandate.
While Trump told reporters earlier this month, 'I'm not going to fire him,' analysts view his repeated barbs as an attempt to exert political pressure and potentially install a 'shadow' chair before the end of Powell's term.
In testimony to Congress on Tuesday, Powell warned that new US tariffs could push up inflation this summer, even as the Fed considers when to start cutting rates. 'We're not rushing,' Powell said, noting the central bank expects inflation to tick up in the near term.
'For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,' Powell said in prepared testimony to the House Financial Services Committee, according to the Associated Press.
The Fed chair's comments come as he began two days of potentially heated testimony on Capitol Hill, with members of Congress set to grill him on inflation, employment and the outlook for monetary policy.
Powell acknowledged that inflation could tick higher this summer, but said the central bank is not in a rush to lower borrowing costs.
His remarks drew a sharp rebuke from Trump, who lashed out at Powell in a social media post just hours before the hearing.
'Too Late' Jerome Powell, of the Fed, will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate,' Trump wrote on Truth Social.
'Europe has had 10 cuts, we have had ZERO. No inflation, great economy — We should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make.'
Trump continued 'If things later change to the negative, increase the Rate. I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come. THE BOARD SHOULD ACTIVATE. MAKE AMERICA GREAT AGAIN!'
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
40 minutes ago
- Indian Express
BJP slams Congress on 50th Anniversary of Emergency, marks ‘Samvidhaan Hatya Diwas' with exhibition in Delhi
To mark the 50th anniversary of the Emergency, imposed on June 25, 1975, by the then Indira Gandhi-led Congress government, the BJP government in Delhi commemorated the day as 'Samvidhaan Hatya Diwas' by inaugurating a special exhibition at Central Park in Connaught Place. The exhibition was organised by the government's Department of Art, Culture and Language, in collaboration with the Hindi Academy. It was inaugurated by Union Minister Manohar Lal Khattar and Delhi Chief Minister Rekha Gupta. Paying tribute to those who resisted the Emergency, the CM drew a parallel between the pro-democracy movement of 1975 and India's freedom struggle. She lashed out at the late Prime Minister Indira Gandhi's government, calling it 'cruel, dictatorial, and insensitive.' 'The 21-month period that began on June 25, 1975, saw millions jailed without cause. There was no appeal, no argument, no hearing — it was the darkest chapter in the history of Indian democracy,' she said. Taking a dig at the Congress, she remarked: 'Those who once crushed democracy now ironically roam with the Constitution in their pockets, despite having disrespected it in the past.' She recalled the sacrifices of BJP leaders and veterans like Atal Bihari Vajpayee, LK Advani, Madan Lal Khurana, and Balraj Madhok, who were imprisoned during the Emergency. 'Their stories must be remembered by future generations,' she said. 'Such dark days will never return to this country, and the people will not tolerate any dictatorial attempt,' she said, adding that both the Centre and Delhi government remain committed to upholding the Constitution and its democratic values. She also announced a year-long series of programmes to honour the 'warriors of democracy' who fought against the Emergency. Minister of Art and Culture Kapil Mishra, whose department had curated the exhibition, said it showcases rare documents, many being displayed publicly for the first time. 'These documents expose how democracy was murdered during the Emergency,' he said. 'Overnight, the entire opposition was thrown behind bars, the courts were stripped of power, journalists were jailed, and media establishments shut down. The way India's democracy was attacked is something the country must never forget,' Mishra said. He called the exhibition 'not just a preservation of history, but a reminder of how democracy was defended through struggle and sacrifice.'
Economic Times
42 minutes ago
- Economic Times
BSE fined Rs 25 lakh for 'unequal' access to corporate disclosures
BSE must have internal controls on how to manage and handle such corporate announcements. Synopsis Sebi has imposed a ₹25 lakh fine on the BSE for its failure to ensure equitable and transparent access to corporate disclosures for all stakeholders. The exchange also exhibited deficiencies in its monitoring of client code modifications. This regulatory action highlights concerns regarding impartiality and internal controls within the BSE's listing compliance monitoring processes. BSEdisclosuressubscribersLCMinvestors Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
Hindustan Times
an hour ago
- Hindustan Times
The alluring fantasy of a quick win in Iran
AFTER THE elation, the doubt. President Donald Trump said that 'Operation Midnight Hammer', had 'totally obliterated' Iran's uranium-enrichment facilities. But now an early intelligence assessment leaked on June 24th suggests the nuclear programme has only been set back by months and that some enriched uranium may have been spirited away. The report is an early 'low-confidence' assessment that both the Trump administration and Israeli sources eschew. But it illuminates a bigger problem. Mr Trump wants a quick-fix to the Iran nightmare with a single, clarifying mega-strike, a ceasefire and then prosperity. Instead America faces years of uncertainty over Iran's capabilities and intentions. As a result Mr Trump's assumption—that he can have a one-day Middle East military triumph and then quickly secure a lasting deal—may be badly misplaced. PREMIUM President Donald Trump has continued to state that the US strikes on Iran set back the nuclear programme by decades(AP) The good news for Mr Trump is that his ceasefire, declared on June 24th, appears to be holding. And the leaked assessment, from the Defence Intelligence Agency, is hardly definitive. It is likely to be revised and there will be competing evaluations from other agencies. Israeli sources emphasise satellite images alone reveal relatively little about the strikes' efficacy below ground and insist that Israel has kept track of the highly enriched uranium. J.D. Vance, the vice-president, said on June 23rd that the uranium was safely 'buried'. The International Atomic Energy Agency, a UN watchdog, reckons that major damage was caused at the two big enrichment sites. Experts say the blast may have created enough of a shock-wave to damage fragile centrifuges even if it did not destroy the main underground concrete structures. Read all our coverage of the war in the Middle East Yet this maddening uncertainty is not a bug—it is an inherent feature of this kind of air-war and bombing operation. And it highlights a deeply uncomfortable question. If Iran's leaders cling to power and continue to pursue a clandestine nuclear programme, dealing with it will require America's long-term military commitment to the region. Is it really up for it? The answer is 'maybe'. Mr Trump has spoken of the ceasefire lasting 'for ever' and made a comparison with Hiroshima: 'That ended that war. This ended the war'. On June 24th Mr Vance hailed a new foreign-policy doctrine that would 'change the world', consisting of a 'clearly defined' American interest, 'aggressive' negotiation and the use of 'overwhelming force' if required. In fact the outlook on Iran is far murkier. America may delegate the task of suppressing Iran's military and any ongoing nuclear programme to Israel, whose spies have shown exceptional skill in penetrating the regime and whose pilots control the skies. Yet Israel is at the limit of its capabilities and Iran will rebuild its defences. America may have to give constant support and weapons. It may be called on to defend Israel and the Gulf from Iranian strikes. And it may have to send bombers back to hit targets beyond Israel's reach. America has become a co-belligerent with Israel and taken ownership of the Iran nuclear file. If the regime collapses Mr Trump may be asked to try to stop the chaos spreading across the region. Some in America fear this may amount to a new 'forever war' with the effort to pacify a recalcitrant Iran drawing America into a quagmire. Some draw a parallel with the first Gulf war in 1991, when America expelled Iraq from Kuwait but did not depose Saddam Hussein. Instead it tried to control his weapons of mass destruction and thuggery through inspections, embargoes, no-fly-zones and bombing. 'If you just changed one letter in the country's name it could all become eerily familiar,' says Richard Fontaine of the Centre for a New American Security, a think-tank in Washington. 'The least likely scenario is that Iran just disappears as a security threat.' The exasperating containment of Iraq was a prelude to the invasion of 2003. An alternative is to try to turn a transient military success into a stable political settlement. Previous presidents have been burned. Ronald Reagan's peacekeeping mission in Lebanon brought suicide attacks on American soliders and diplomats in 1983. Barack Obama's air campaign in Libya in 2011 caused a still-raging civil war. Mr Trump has claimed Mr Reagan's slogan of 'peace through strength'. His envoy, Steve Witkoff, says 'promising' talks are happening with Iran, directly and indirectly. Iran's president, Masoud Pezeshkian, says it is ready to resolve its differences with America 'within the framework of international norms'. The priority is to restrict Iran's nuclear programme (though the effort might plausibly extend to ending Israel's war in Gaza and fostering a normalisation deal between Israel and Saudi Arabia). The most convincing agreement would be one that forces Iran to give up its capacity to enrich uranium and surrender its stock of fissile material enriched to 60%, which is close to the weapons-grade. But Iran has always insisted on the right to enrich for 'civilian' purposes. And Mr Trump may find that his blandishments about trade, money-making and friendship with America are not enough to tempt newly empowered hardliners in Iran who are rattled after the success of Israel's attack and nervous at their lack of deterrence. The harder Mr Trump pushes for 'zero enrichment', the harder it will be to persuade Iran into a deal. Mr Trump has argued to his base that a short burst of demonstrative force yields decisive results. If he now threatens an immediate return to military action, prominent MAGA devotees will complain that he is leading America into another Middle Eastern debacle. And if he commits to a strategy of long-term containment, some of his own strategists will balk at the aircraft carriers, planes and air-defence systems diverted from Asia. The administration's interim national defence guidance, from March, declared that America's military priorities henceforth were defending the homeland and preventing a Chinese invasion of Taiwan. It has only taken three months for events to impose a totally different reality. Sign up to the Middle East Dispatch, a weekly newsletter that keeps you in the loop on a fascinating, complex and consequential part of the world.
