Trump to announce nominee for next Federal Reserve chair next week

2026-01-29 - 19:01

US President Donald Trump has announced his intention to name a new chair for the Federal Reserve next week, setting the stage to replace incumbent Jerome Powell. Speaking at a Cabinet meeting on Thursday, Trump indicated his nominee would be someone who "will, I think, do a good job," marking a significant shift in leadership for the world's most influential central bank. Criticism of Current Monetary Policy The president's announcement followed the Federal Open Market Committee's decision on Wednesday to hold the benchmark interest rate steady in a range of 3.5% to 3.75%. Trump strongly criticized the current policy stance, declaring that Fed rates are "too high, unacceptably high." He argued, "We should have the lowest interest rate anywhere in the world. They should be two points and even three points lower," expressing a clear preference for a more aggressively accommodative monetary policy. Timing and Context of the Leadership Change Chair Powell's term is scheduled to conclude in May, making the timing of Trump's forthcoming announcement standard procedure for a transition. However, the public critique of current rates underscores the president's desire for a Fed leadership more aligned with his economic views, prioritizing growth and lower borrowing costs over inflation concerns. The Fed's latest statement described economic activity as expanding at a "solid" pace. Global Implications of the Decision The selection of the next Fed chair is closely watched by global financial markets and central banks, including in emerging economies like Türkiye. A shift toward a more dovish leadership could influence global capital flows, currency valuations, and international borrowing costs. The decision will have far-reaching implications for the stability of the US dollar and the broader international financial system.