2025-12-25 06:21:42

Trump recently sent a strong signal regarding the Fed Chair nomination: anyone who doesn't cut interest rates according to his wishes shouldn't expect to sit in that chair. Behind this statement lies a struggle for power and policy.

His core demand is straightforward— the new Fed Chair must decisively cut rates when he deems appropriate. Trump is confused or even angry about the current market phenomena: why do stocks fall when good news is announced? In his view, positive economic data should push stock prices higher, not trigger fears of rate hikes.

Ironically, right after Trump made this statement, the market responded loudly. Data released on Tuesday showed that the third quarter GDP grew at an annualized rate of 4.3%, which is undoubtedly good news. What was the result? The S&P 500 not only didn't fall but rose for four consecutive days, hitting a new all-time high. Reality slapped him in the face.

This phenomenon of "good news turning into bad news" has existed in financial markets for decades. Professionals generally see it as a rational market reaction—strong economic data often signals higher inflation and the possibility of rate hikes. But Trump clearly does not accept this logic; he is determined to redefine the game rules through political influence.

According to the latest news, Trump has narrowed the list of candidates for Fed Chair to 3-4 people and is likely to announce the final nomination within the next few weeks. His urgency to push for rate cuts is not complicated— to ease voters' anxiety over rising living costs. He has repeatedly publicly stated that he hopes interest rates can be lowered to around 1%.

This time, Trump directly linked his rate cut demand to the Fed Chair candidate selection, effectively conducting a "loyalty test" for the candidates. According to his logic, those who align with his policy stance can get the nomination; others will be excluded. This unconventional way of exercising power vividly demonstrates how political realism can profoundly influence financial decision-making.

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GweiTooHigh

· 8h ago

Haha, Trump is joking again. Does he really think the Federal Reserve is his company? Honestly, this guy's understanding of financial markets is ridiculous. Good data = price increase, why is that so hard to understand? Interest rate 1%? Dream on, inflation will take off. Another loyalty test. It feels like the Fed Chair is about to become his personal secretary, haha. The market is giving a harsh reality check. The GDP is so good, and the stock market is hitting new highs. That's true irony. Now this candidate is actually quite awkward. It's hard to offend anyone. Political interference in the central bank is quite a novelty in the US. The independence of the Federal Reserve is probably over. The power game is getting more and more absurd. Talking about 1% interest rate so casually. When the debt explodes, let's see how it ends. It seems the next chairperson needs to be an actor. Acting skills are the most important.

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GasFeeCrybaby

· 9h ago

Haha, Trump really treats the Federal Reserve like his private bank. If he can't get a rate cut, he just replaces people—his logic is incredible. In fact, the market has been mocking him for a long time. The GDP results are good, and the stock market keeps hitting new highs, giving him a slap in the face. 1% interest rate? Dream on, brother. This guy is still thinking about the good old days of 2008. Loyalty test? It's just buying off the Federal Reserve. Anyway, everyone is playing political games now. If this continues, the crypto world will win effortlessly, while traditional finance fights among themselves. Let's wait and see how the Federal Reserve responds to him. This show is far from over.

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BearWhisperGod

· 9h ago

Ha, Trump is really trying to turn the Federal Reserve into his ATM, that's incredible. Laughing to death, good news comes out and the market drops instead. This guy will never understand what's really going on. 1% interest rate? Wake up, brother, the world isn't that cheap. Basically, it's a loyalty test—if you're not obedient, you're out. A classic power play. The market has already responded: when GDP hits 4.3%, the S&P 500 hits a new high, giving a sharp slap in the face. Feels like the Federal Reserve is about to be made a fool of—what about its independence? This move is really bold, directly tying rate cuts to nominations—classic American righteousness. But honestly, if the interest rate really hits 1%, inflation will explode. How will we get through that?

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DogeBachelor

· 9h ago

Interest rate 1%？Bro, are you trying to recreate 2008 in 2025? Trump, man... Really treating the Federal Reserve Chair as a subordinate, but ironically, the market doesn't buy into this at all... Cutting rates again and again, but in the end, inflation still calls the shots. This guy's thinking is way too simple. Honestly, who has a future with him... What is the independence of the Federal Reserve worth? GDP at 4.3% isn't good news, the stock market is still hitting new highs... Talk about a face slap.

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