Trump has thrown down the gauntlet again: The next Federal Reserve Chairman cannot suppress the market without reason. The economy is good and interest rates must be lowered proactively.

U.S. President Trump has sent a clearer signal on the selection of the Federal Reserve Chairman and monetary policy. If the economy and markets perform well, he hopes the new Federal Reserve Chairman will push for rate cuts rather than "unreasonably suppressing the market" due to inflation concerns. Trump stated on social media on Tuesday: "If the markets are doing well, I hope the new Federal Reserve Chairman will lower interest rates, rather than destroying the market for no reason. Anyone who disagrees with this cannot become the Federal Reserve Chairman." He criticized a "paradoxical phenomenon" that has emerged in recent years, where positive economic data leads to market declines because investors worry that the Federal Reserve will quickly raise rates due to potential inflation. However, Tuesday's market performance did not confirm this concern. Data from the Bureau of Economic Analysis showed that real Gross Domestic Product (GDP) grew at an annualized rate of 4.3% in the third quarter. Boosted by this, the S&P 500 index rose for the fourth consecutive trading day and approached a historical high. Trump's latest statement comes as he seeks to lower borrowing costs by changing the leadership of the Federal Reserve. The White House also faces increasing political pressure as voters continue to focus on rising living costs such as housing. Trump revealed last week that the selection to replace current Chairman Powell had been narrowed down to "three to four people" and the results may be announced in the "coming weeks." He named National Economic Council Director Kevin Hassett and former Fed Governor Kevin Warsh as major contenders, while also interviewing and publicly praising Fed Governor Christopher Waller. Trump stated, "I think they would all be good choices." Earlier this month, the Federal Reserve lowered its benchmark interest rate by 25 basis points to 3.5%-3.75%, marking the third consecutive rate cut at its meetings. However, there are still differences within the Federal Open Market Committee (FOMC) on whether to continue cutting rates. Three officials dissented from the decision, the most since 2019. Powell described this rate cut as a "difficult decision." Trump has repeatedly called for a sharp reduction in rates to around 1% or even lower. Hassett, a potential candidate for Chairman, has also expressed dissatisfaction with the Federal Reserve in public. In an interview on Tuesday, he said that despite the strong growth of the U.S. economy in the third quarter, the pace of rate cuts by the Fed is still too slow. He said, "If you look at central banks around the world, the U.S. is clearly falling behind in rate cuts." Hassett believes that the AI boom is driving economic growth while exerting downward pressure on inflation. He also pointed out that about 1.5 percentage points of the 4.3% GDP growth in the third quarter came from Trump's tariff policies reducing the trade deficit. However, Hassett's close relationship with Trump has raised concerns among some market participants about the independence of the Federal Reserve. In response, Hassett emphasized the "very important" independence of the Federal Reserve. Trump reiterated in a national TV address last week that he will choose "someone who strongly believes in significant rate cuts" as the next Federal Reserve Chairman. The address focused on the issue of affordability, but according to the latest polls, Trump's support on economic issues is only at 37%. Regarding Trump's declining support, Hassett said that public perception often does not fully reflect the economic data itself, "this is largely related to news reports and how people understand and perceive the external world."