Rate cut war: Donald Trump narrows choice for next US Fed chair to ‘three or four people’; calls Jerome Powell ‘terrible’

US President Donald Trump called Federal Reserve Chair Jerome Powell “terrible” and said he had narrowed down his choice for the next Fed chair to “three or four people,” stoking fresh speculation about an early leadership change at the central bank.“I know within three or four people who I’m going to pick,” Trump told reporters, when asked if he was interviewing candidates to succeed Powell, whose term ends in May 2026.According to a Reuters report, the list of leading contenders includes former Fed Governor Kevin Warsh, current Governor Christopher Waller, Treasury Secretary Scott Bessent, and National Economic Council director Kevin Hassett.Trump has repeatedly attacked Powell for not moving fast enough to cut interest rates, even threatening to fire him — a move many legal experts say would breach the Fed’s independent mandate.While Trump told reporters earlier this month, “I’m not going to fire him,” analysts view his repeated barbs as an attempt to exert political pressure and potentially install a “shadow” chair before the end of Powell’s term.In testimony to Congress on Tuesday, Powell warned that new US tariffs could push up inflation this summer, even as the Fed considers when to start cutting rates. “We’re not rushing,” Powell said, noting the central bank expects inflation to tick up in the near term. “For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell said in prepared testimony to the House Financial Services Committee, according to the Associated Press. The Fed chair's comments come as he began two days of potentially heated testimony on Capitol Hill, with members of Congress set to grill him on inflation, employment and the outlook for monetary policy. Powell acknowledged that inflation could tick higher this summer, but said the central bank is not in a rush to lower borrowing costs. His remarks drew a sharp rebuke from Trump, who lashed out at Powell in a social media post just hours before the hearing. “Too Late' Jerome Powell, of the Fed, will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate,” Trump wrote on Truth Social. “Europe has had 10 cuts, we have had ZERO. No inflation, great economy — We should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make.” Trump continued “If things later change to the negative, increase the Rate. I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come. THE BOARD SHOULD ACTIVATE. MAKE AMERICA GREAT AGAIN!”