🗞️ Trump Pushes for Further Fed Rate Cuts — What’s Happening?

President Donald Trump has publicly supported the Federal Reserve’s recent decision to trim interest rates — but is urging the central bank to go much further and faster with cuts to borrowing costs. His comments come amid an ongoing internal reshuffle and leadership uncertainty at the Fed.

• Trump believes that current rate reductions — including a recent 25-basis-point cut — have not gone far enough, and has signaled he wants more aggressive easing of monetary policy.
• His push for deeper cuts is paired with efforts to influence leadership at the Fed, including indicating that his next Fed chair should share his rate-cutting preferences.

🏛️ Fed Leadership & Structural Dynamics

The latest political and institutional developments around the Fed are shaping how monetary policy could evolve next year:

• Leadership shuffle: President Trump is nearing decisions on Fed leadership changes, with key contenders — including his economic adviser Kevin Hassett — seen as more supportive of lowering rates. This raises questions about the independence of the central bank going forward.
• Regional reappointments: The Fed has reappointed 11 of 12 regional bank presidents to five-year terms — a move analysts say could help maintain policy continuity despite political pressure.
• Political objections: Democratic leaders, including Senator Elizabeth Warren, have criticized Trump’s potential Fed picks, arguing they could weaken the Fed’s independence if they simply act on presidential directives.

📊 Why This Matters for Markets & the Economy

• Monetary policy direction: Trump’s push for additional rate cuts reflects broader political debates about how best to support growth, job creation and inflation control. However, the Fed has so far signalled that future cuts will depend on economic data — including labour market trends and inflation dynamics — rather than political pressure alone.
• Market expectations: Investors are watching closely, as further rate cuts could influence bond yields, equity valuations and risk asset demand globally. Even the expectation of more cuts has been enough to draw some flows back into bonds.
• Central bank independence: The ongoing discussions over leadership and potential political influence on the Fed highlight a key risk: if appointments or policy decisions are perceived as politicised, it could affect confidence in U.S. monetary policy stability.

In Summary:
President Trump is advocating for additional Federal Reserve rate cuts beyond those already delivered, and is linking that push to changes in Fed leadership. While markets are receptive to the idea of easier policy, the Fed has emphasised its data-dependent process. Leadership changes and political scrutiny over the Fed’s independence remain key developments to watch — with implications for interest rates, inflation control, and global financial markets in 2026.