U.S. President Donald Trump said the next Chair of the Federal Reserve should consult with him on interest-rate decisions and added that U.S. interest rates should be significantly lower within a year.
The remarks were made in a recent interview with The Wall Street Journal and were later reported by several financial news outlets, including Investing.com.
According to the report, Trump stated that interest rates should be around 1% or lower a year from now. He also said that the next Federal Reserve Chair should take guidance from him on monetary policy decisions.
During the interview, Trump discussed potential candidates to succeed current Fed Chair Jerome Powell, whose term is scheduled to end in 2026. Trump reportedly mentioned Kevin Warsh, a former Federal Reserve governor, and Kevin Hassett, former chair of the Council of Economic Advisers, as possible contenders for the role.
Trump made the comments while discussing his views on economic policy and central banking, emphasizing his belief that interest rates should be much lower than current levels.
The Federal Reserve is legally structured to operate independently from the White House. While U.S. presidents appoint the Fed Chair and Board members, interest-rate decisions are made by the Federal Open Market Committee (FOMC).
As of now, there has been no official response from the Federal Reserve regarding Trump’s remarks.
