US President Donald Trump has announced that he will announce a new position as Federal Reserve Chairman within the next week.
President Trump’s statement comes as current Federal Reserve Chairman Jerome Powell’s term nears its end and political pressure on interest rate policy is steadily increasing.
In a post on his Truth Social account, President Trump harshly criticized the Federal Reserve, arguing that it is not lowering interest rates fast enough. “Even this idiot admits that inflation is no longer a problem or a threat, so we should cut interest rates even further now,” Trump said. However, Chairman Powell did not define inflation this way and continued to stress that risks to price stability have not completely disappeared.
Although the identity of the new Fed chair remains unclear, Powell sent a notable message to his successor yesterday. Responding to questions from journalists, Mr. Powell indirectly warned his successor against getting involved in politics, stressing the critical importance of protecting the central bank’s independence. Powell’s message is seen as an important framework for the new chairman, who takes office amid expectations of growing political demands to lower interest rates to levels “near zero.”
Meanwhile, on the crypto-based prediction platform Polymarket, bets are heating up on who President Trump will choose as Fed Chairman. According to the platform’s data, Rick Rieder is priced in as the top candidate (about 39%), followed by Kevin Warsh (30%) and Christopher Waller (13%). Other candidates are priced in at lower odds, including Kevin Hassett, Judy Shelton, Scott Bessent, Stephen Milan and Michelle Bowman.
*This is not investment advice.