1. Why is Trump upset with Fed Chair Jerome Powell?

Trump criticized Powell for acting too slowly on interest rates, calling him “Jerome ‘too late’ Powell.” He blames Powell for harming the housing market and mismanaging rate decisions. Trump insists the economy has performed strongly despite the Fed’s actions. The president has publicly stated he would like to fire Powell before his term ends in May.

2. Who is on the shortlist to replace Powell?

 Trump confirmed he has already begun interviewing potential successors to Powell, mentioning both "surprising names" and more traditional candidates. Treasury Secretary Scott Bessent, who is coordinating the chair search, has publicly acknowledged a short list that includes Kevin Hassett, Christopher Waller, and Kevin Warsh. The new chair would take office in May when Powell's current term expires, potentially inheriting a challenging economic environment shaped by tariff policies and uncertain inflation trends. 

3. Is the Federal Reserve actually planning to cut rates?

 The outlook is uncertain because policymakers are "increasingly split." While investors previously expected a December cut, stubborn inflation and mixed employment data have made officials hesitant. Some Fed members argue for a pause to check inflation, while others warn that failing to cut rates could further weaken the labor market. 

4. What are the risks of the Fed's next decision?

Some analysts warn that cutting rates too aggressively now could force rate hikes later in 2026, just as Trump's new Fed chair would be taking office. The likelihood of a December rate cut has dropped sharply as inflation concerns persist, despite most investors previously expecting one. Minutes from the Fed's October meeting revealed unusual disagreement, with one official pushing for a larger cut and another opposing any reduction entirely. The delayed economic data won't be available until mid-December, making the central bank's next move unusually uncertain and politically charged.