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Trump Says Rate Cut Is Key Test For New Fed Chair
President Donald Trump has said that support for interest rate cuts will be a deciding factor when choosing the next chair of the U.S. Federal Reserve. He called it a “litmus test”, making clear that any nominee must favour reducing borrowing costs soon.
Criticism of current leadership
Trump again criticised the current Fed leadership and argued that the central bank has been too slow in cutting rates. He said lower rates would stimulate growth, boost jobs and support businesses. The President added that delay in easing monetary policy has hurt the economy.
Markets await decision
Markets are already expecting the Federal Reserve to consider a rate cut at its next policy meeting. Trump’s comments added fresh uncertainty, as investors are watching whether political pressure will influence the timing and size of future rate moves.
Debate over central bank independence
Economists and former officials warned that tying appointments to rate policy could weaken the independence of the Federal Reserve. They stressed that decisions on interest rates should be made on economic data, not political demands. The situation is being closely followed by financial markets and global institutions.
