Trump predicts rate cuts after replacing Federal Reserve chair
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Trump says his next Fed chair will usher in “a lot” of rate cuts, stoking debate over political pressure on the central bank and what looser policy means for crypto. Summary Trump says he will soon name a new Fed chair and predicts “a lot” of rate cuts once that pick is in place, an unusually direct political nudge at monetary policy. Traders are already debating the timing of a pivot as high rates weigh on risk assets, with Fed officials split over how quickly inflation will cool. Bitcoin, Ethereum, and XRP trade in tight ranges as markets watch inflation, jobs, and growth data for clues on how a Trump-era Fed could reshape liquidity. U.S. President Donald Trump said he will soon name his next Federal Reserve chair and predicted that borrowing costs will fall once that pick is in place, signaling fresh pressure on the U.S. central bank’s rate path as markets digest stubborn inflation and a late‑cycle economy. Trump’s promise on rates Speaking at an event in Iowa on Tuesday, Trump told supporters he is close to a decision on who will lead the Fed. “When we have a great Fed chairman, I think we’re going to have one. I’ll announce it pretty soon. You’ll see rates come down a lot,” he said, directly tying his yet‑to‑be‑named candidate to a future easing cycle. The White House has not released a shortlist, and there was no immediate comment from the Federal Reserve, which formally sets policy through its Federal Open Market Committee. Trump’s remarks underscore the political stakes around monetary policy after an aggressive tightening campaign left benchmark U.S. rates at multi‑year highs and pushed up costs for mortgages, credit cards and corporate debt. While presidents routinely appoint Fed chairs, explicit public forecasts from the Oval Office about future…
Filed under: News - @ January 28, 2026 8:22 am