U.S. President Donald Trump and Federal Reserve Chair Jerome Powell speak during a tour of the Federal Reserve Board building, which is currently undergoing renovations, in Washington, D.C., U.S., July 24, 2025. REUTERS/Kent Nishimura/File Photo
(Washington, DC) – President Donald Trump said he will announce his pick for the next head of the Federal Reserve next week, escalating his long-running feud with current Fed Chair Jerome Powell and renewing demands for sharply lower interest rates.
Trump made the announcement as he intensified criticism of Powell, accusing him of “hurting our country” and undermining national security by refusing to cut rates further. In a series of posts on Truth Social, Trump argued the Federal Reserve has “absolutely no reason” to keep rates where they are and called Powell a “moron” who is costing the U.S. hundreds of billions of dollars annually in interest expenses.
“Because of the vast amounts of money flowing into our country because of tariffs, we should be paying the LOWEST INTEREST RATE OF ANY COUNTRY IN THE WORLD,” Trump wrote, demanding immediate and substantial cuts regardless of economic indicators.
Trump did not name his preferred replacement for Powell but said he has a “top choice” already selected. The announcement is expected to draw intense scrutiny from financial markets, given the Fed chair’s central role in setting interest rates and guiding monetary policy.
Trump’s comments came roughly a day after the Federal Reserve voted to hold interest rates steady following three consecutive months of cuts. The decision was made by the Federal Open Market Committee, which cited solid economic growth and inflation that remains somewhat elevated. Only two members — both Trump appointees — voted in favor of additional cuts.
Powell has defended the Fed’s independence, stressing that future rate decisions will be based on economic data rather than political pressure. His stance has drawn bipartisan concern in Congress after reports emerged that the Department of Justice had opened an investigation into him, a move critics say could be interpreted as an attempt to intimidate the central bank.
Trump has repeatedly targeted Powell throughout his presidency, framing the Fed’s interest rate policy as an obstacle to economic growth. With Trump now signaling an imminent announcement of a new Fed chair, the clash over monetary policy and central bank independence is poised to become a major political and economic flashpoint.
