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President Donald Trump, speaking to reporters at the NATO summit in The Hague, said he plans to install a new Federal Reserve chair who is fully committed to cutting interest rates, according to information from Bloomberg and the Wall Street Journal.

“If I think somebody’s going to keep the rates where they are or whatever, I’m not going to put them in. I’m going to put somebody that wants to cut rates. There are a lot of them out there,” Trump said on Friday.

Trump’s public attack on current Fed Chair Jerome Powell is getting more and more agitative. He once again called Powell “a stubborn mule and a stupid person” over the Fed’s repeated decisions to hold rates steady.

When asked if he wants Powell out, Trump responded, “I’d love him to resign if he wanted to.” The tension between the two men, which has been building for years, is now boiling over. Trump is openly planning for Powell’s replacement, saying he already has “three or four” people in mind.

He didn’t name anyone specifically or provide a timeline. Powell’s current term ends in May 2026, but Trump is clearly not waiting around.

Trump pushes for 2.5-point rate cuts despite Fed resistance

Trump said earlier this month that a list of potential replacements for Powell will be revealed “very soon.” Behind the scenes, speculation has picked up. Reports from The Wall Street Journal say Trump is considering announcing his pick sooner than planned.

That news came just as the Bloomberg Dollar Spot Index dropped by 0.2% in early Thursday trading, with the US dollar weakening against every major global currency, clearly reacting to Trump’s comments.

Some names are floating in the background. Trump allies have reportedly suggested Treasury Secretary Scott Bessent, although a senior official inside the administration denied that claim. Trump has spoken positively about Kevin Warsh, a former Fed governor, calling him “very highly thought of.”

But again, Trump is keeping any final decision under wraps, only saying the replacement will be someone who fully supports cutting rates.

The president has been pushing for a full 2.5 percentage point cut to the federal funds rate. That’s way beyond what the Fed has even hinted at.

Just last week, Powell and his fellow policymakers left rates untouched, keeping them between 4.25% and 4.5%, where they’ve been sitting since the beginning of the year. The Fed also indicated they might lower rates by only 0.5 percentage points by the end of 2025, far less than what Trump wants.

Trump slams Powell’s policies and leans into tariff deadline

Trump has gone after Powell repeatedly. On social media, he labeled Powell “Too Late,” mocking his caution. He’s gone back and forth about firing Powell, sometimes suggesting he might, other times claiming he wouldn’t.

Last week, Trump posted again, writing, “Regardless, his Term ends shortly!” The comment came after Powell testified before the House Financial Services Committee, where the chair defended the Fed’s policies and urged caution, saying the bank would wait to see how Trump’s economic policies, especially his tariffs, would affect inflation before making any rate decisions.

Powell’s wait-and-see approach doesn’t sit well with Trump. The president blames Powell for keeping borrowing costs high for the government and believes the Fed’s rate strategy is working against his broader fiscal agenda. As Trump continues to adjust the specifics of his tariff programs, he’s also trying to finalize trade deals before a July 9 deadline.

Those deals could lower or eliminate some high import duties that are scheduled to go into effect. Powell has said the Fed wants to see how those moves play out before changing policy. Trump, on the other hand, wants faster decisions and fewer excuses.

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