U.S. President Donald Trump said on Tuesday he will announce his pick for the new head of the Federal Reserve soon, and that interest rates will fall with the central bank under new leadership.
Speaking at a rally in Des Moines, Iowa, Trump said “When we have a great Fed chairman, I think we’re going to have one. I’ll announce it pretty soon… you’ll see rates come down a lot.”
Fed Chair Jerome Powell’s term ends in May, with Trump set to announce his pick for Powell’s successor in the coming months.
The president has repeatedly pressed Powell to cut interest rates sharply, claiming that the Fed has been too slow in easing rates and loosening monetary conditions.
Trump kept up his criticism of Powell, calling him “too late Powell” during his Tuesday address.
Trump’s demands for lower rates came to a head earlier this month after Powell said he had been threatened with a criminal investigation by the Department of Justice over his reluctance to cut rates.
Trump’s badgering of Powell has sparked heightened concerns over the independence of the central bank– concerns which also spurred a selldown in U.S. bonds and the dollar.
Source: Investing