Trump says anybody who disagrees with him 'will never be' Fed chair
WASHINGTON
U.S. President Donald Trump said that he would only consider Federal Reserve chairman candidates who share his views on interest rates, insisting on appointees who prioritize lowering rates during strong market performance.
In a detailed Truth Social post reacting to new economic data and market trends, Trump criticized the Federal Reserve for hiking rates amid economic strength, claiming such actions undermine rallies and growth.
"Anybody that disagrees with me will never be the Fed Chairman!" Trump stated.
He advocated for a Fed chair focused on market expansion, avoiding hikes that "kill rallies."
Trump argued robust or "phenomenal" markets do not fuel inflation, suggesting inflationary issues could be handled later if needed.
"I want my new Fed Chairman to lower Interest Rates if the Market is doing well, not destroy the Market for no reason whatsoever," he wrote.
Trump has repeatedly called for Fed rate cuts and views replacing Jerome Powell—whose term ends in May 2026—as a key chance to reshape the institution.
He has repeatedly criticized Powell as overly hesitant and timid on rate cuts and has suggested he expects his replacement to move more aggressively to lower rates.
US economic growth surges
The Commerce Department reported U.S. economic growth surged at a 4.3 percent annualized rate in the third quarter of 2025, exceeding expectations and marking the highest in two years.
The initial estimate, delayed nearly two months by a government shutdown, showed boosts from consumer spending, exports and government outlays, offset partly by reduced investment.
Analysts had forecasted 3.2 percent to 3.3 percent growth.
The domestic purchases price index rose 3.4 percent , up from 2.0 percent in the second quarter, indicating accelerated inflation.
The data reflects an uneven economy with growth but persistent inflation above the Fed's 2 percent target, amid a weakening labor market prompting recent rate cuts.
Trump hailed the report as evidence that the "Trump Economic Golden Age is FULL steam ahead," attributing it to his "genius" tariff policies and claiming "NO INFLATION," despite contrary indicators.
Experts suggest the strong GDP may influence Fed decisions.
"I think the implication is that with the GDP numbers being as strong as they are, that gives the Fed additional reason to be on hold at the January meeting," said CFRA Research's Sam Stovall.
Mike Fratantoni, chief economist at the Mortgage Bankers Association, noted, "The data shows an economy that is growing, but unevenly, one where inflation is still running well above the (Fed's) target," predicting one rate cut in 2026.
The Fed's median 2026 GDP forecast is 2.3 percent , up from 1.7 percent in 2025.
Improved sentiment stems from Trump's administration negotiating deals with China and others, averting harsh tariffs, alongside an AI investment boom by firms like OpenAI and Google sustaining stock market highs.
Most Asian stocks rose on Dec. 24 and gold topped $4,500 for the first time as investors tracked a record on Wall Street following forecast-beating U.S. economic growth data.