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Donald Trump said the next Federal Reserve chair must cut interest rates when markets are strong, warning that anyone who disagrees with his approach will not get the job.
US President Donald Trump speaks during an address to the nation from the Diplomatic Reception Room at the White House. (Photo: AP)
New Delhi,UPDATED: Dec 24, 2025 01:50 IST
Donald Trump said the next Federal Reserve chair must cut interest rates when markets are strong, warning that anyone who disagrees with his approach will not get the job.
US President Donald Trump on Tuesday laid out a blunt test for the next head of the Federal Reserve, saying he wants a chair who will lower interest rates when markets are doing well and warning that dissent will be disqualifying.
In a social media post, Trump said he is actively selecting the next Fed chairman and made clear that alignment with his economic views is non-negotiable.
“Anybody that disagrees with me will never be the Fed Chairman,” Trump wrote, arguing that the central bank has repeatedly undermined market momentum at the wrong moments.
Trump pointed to what he described as strong economic news, citing GDP growth of 4.2 percent compared with a predicted 2.5 percent, even as he blamed a recent Democratic shutdown for dragging on the economy. He said markets no longer respond to good news the way they once did, staying flat or falling because investors expect the Fed to raise rates to guard against potential inflation.
In Trump’s telling, that mindset has robbed the country of the kind of sustained rallies seen during earlier periods of growth. “Strong Markets, even phenomenal Markets, don’t cause Inflation, stupidity does!” he wrote, taking aim at what he called entrenched thinking on Wall Street and at the central bank.
The president said his preference is clear: when markets are performing well, the Fed should cut rates, not raise them. He argued that inflation could be addressed later if needed, but warned that premature tightening risks killing rallies that could lift the economy dramatically. Trump claimed such rallies could add “10, 15, and even 20 GDP points in a year — and maybe even more than that.”
Trump framed his approach as rewarding success rather than punishing it. “A Nation can never be Economically GREAT if ‘eggheads’ are allowed to do everything within their power to destroy the upward slope,” he wrote, promising to encourage markets to “get better” rather than hold them back.
He closed with a familiar refrain, saying the United States should be rewarded for success — and reiterating that only a Fed chair who shares that philosophy will get the job.
- Ends
Published By:
Aashish Vashistha
Published On:
Dec 24, 2025
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