Trump increases pressure on Federal reserve chair

President Donald Trump is stepping up his criticism of Federal Reserve Chair Jerome Powell, hinting at an early announcement for Powell’s replacement. During a press conference at the NATO summit in The Hague, Trump revealed he has a shortlist of three or four candidates to take over when Powell’s term ends next year. This news follows a Wall Street Journal report suggesting Trump might name a successor as early as September, which is earlier than usual.

Trump’s comments have stirred financial markets, with the U.S. dollar dropping and Treasury yields falling as investors expect interest rate cuts could happen sooner. The possibility of an early appointment has raised concerns about Powell becoming a less influential figure at the Federal Reserve before his term officially ends in 11 months. Trump has openly called Powell “terrible” and criticized his handling of interest rates, claiming it’s hurting the economy. Market reactions reflect the uncertainty.

The dollar has weakened significantly in 2025, with an 8.4% drop, a level not seen since 2019. Investors are closely watching how Trump’s push for a new Fed chair might affect monetary policy. Meanwhile, discussions about tariffs and their impact on inflation continue, with Powell noting that their effects are still unclear but could influence prices in the coming months. This ongoing tension between Trump and Powell is shaping expectations for economic policy and market trends soon.