Trump says to announce new US Fed chair 'next week'

WASHINGTON: US President Donald Trump said Thursday that he will announce a new Federal Reserve chief next week to replace Jerome Powell, whom he has repeatedly criticized for not lowering interest rates more aggressively.

Trump's comments at a cabinet meeting came after months of his escalating pressure on the independent central bank, with the president again slamming Powell as a "moron" for not slashing rates more quickly earlier in the day.

Powell's term at the helm of the Fed ends in May, and Trump has been due to unveil his replacement ahead of this deadline.


As his search narrows, key contenders include former Fed official Kevin Warsh, Fed governor Christopher Waller, Rick Rieder of BlackRock and Trump's chief economic adviser Kevin Hassett.

On Thursday, Trump said: "We're going to be announcing next week, I think, sometime."

"We're going to be announcing the head of the Fed," the US leader added. "It'll be a person that will, I think, do a good job."

He renewed criticism of the bank, saying interest rates were still "too high, unacceptably high."

"We should have the lowest interest rate anywhere in the world. They should be two points and even three points lower," Trump added.

A day prior, the Fed opted to pause its series of rate cuts as policymakers await further data on the world's biggest economy, drawing Trump's ire.

He lashed out at Powell on Thursday, claiming the Fed chief was "politically biased."

Earlier Thursday, Trump wrote on his Truth Social platform that Powell had "absolutely no reason" to keep rates elevated.

In holding rates unchanged at a range between 3.50 percent and 3.75 percent on Wednesday, the central bank cited solid US economic growth and a stabilization in the unemployment rate.

For now, Powell said, the aim was to let data guide the way on the future path of interest rates.

Trump has ramped up attacks on the Fed since returning to the White House last year, seeking to oust Fed Governor Lisa Cook over the summer while the Department of Justice separately launched a probe into Powell over renovation costs at the bank.