Trump: Rate Cut is Litmus Test for New Fed Chair

• Trump stated he would judge a new Federal Reserve chair by their willingness to immediately cut interest rates, calling it a "litmus test."
• He criticized current Fed Chair Jerome Powell, calling him "not a smart person" and suggesting he "doesn't like Trump."
• Trump has repeatedly called for the Fed to lower its benchmark rate below 2%, compared to the current 3.75% to 4% target.
• Kevin Hassett, a reported frontrunner for Fed chair, has previously suggested central banks should cut rates.
• Trump has decided on a candidate but will not publicly announce his decision until early next year.

Why It Matters: Trump's rate cut demand is a litmus test for future Fed chairs.