Trump says anybody who disagrees with him will never be Fed Chair, calls for lower interest rates

U.S. President Donald Trump on Tuesday expressed his expectations for the next chairman of the Federal Reserve, insisting that interest rates should be lowered if the markets perform well, and warning that “anybody that disagrees with me will never be the Fed Chairman.”

Posting on Truth Social, Trump highlighted the nation’s strong economic performance, saying, “The Financial News today was great — GDP up 4.2% as opposed to the predicted 2.5% (and this, despite the downward pressure of the recent Democrat Shutdown!).” He criticised the current behaviour of Wall Street, claiming that “in the modern market, when you have good news, the Market stays even, or goes down, because everybody thinks that Interest Rates will be immediately lifted to take care of ‘potential’ Inflation.”

Trump argued that strong markets do not cause inflation, but poor policy decisions do. “Strong Markets, even phenomenal Markets, don’t cause Inflation, stupidity does! I want my new Fed Chairman to lower Interest Rates if the Market is doing well, not destroy the Market for no reason whatsoever,” he said.

The former president also emphasised his desire for a more responsive market: “I want to have a Market the likes of which we haven’t had in many decades, a Market that goes up on good news, and down on bad news, the way it should be, and the way it was. Inflation will take care of itself and, if it doesn’t, we can always raise Rates at the appropriate time — But the appropriate time is not to kill Rallies, which could lift our Nation by 10, 15, and even 20 GDP points in a year — and maybe even more than that!”