U.S. President Donald Trump said on Wednesday that he will soon announce a new chairman of the Federal Reserve who strongly supports cutting interest rates, arguing that significantly lower rates would help reduce mortgage payments. Speaking during a national address highlighting his economic and national security record in the first year of his second term, Trump said the next Fed chair would believe in lowering rates “by a lot,” reinforcing his long-standing call for cheaper borrowing costs.
Trump has indicated he plans to name a successor to current Federal Reserve Chair Jerome Powell early next year. Leading contenders include White House economic adviser Kevin Hassett, former Fed Governor Kevin Warsh and current Fed Governor Chris Waller, all of whom have expressed support for lower interest rates. However, none has publicly backed rate cuts as deep as those Trump has advocated, with the current benchmark Fed rate standing at 3.5% to 3.75% and mortgage rates remaining around 6.3% to 6.4%.
The president reiterated his view that the next Fed chair should consult with him on interest rate decisions, a stance that departs from the tradition of Federal Reserve independence. While acknowledging that longer-term rates influencing mortgages are shaped by market expectations rather than the Fed alone, Trump said presidential input on monetary policy “should be listened to,” underscoring his desire for a more direct role in shaping U.S. interest rate policy.
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