{"content":"#FedralReserve Trump’s Push to Replace Fed Chair for Aggressive Rate Cuts Former President Donald Trump has signaled plans to replace Federal Reserve Chair Jerome Powell to pursue aggressive interest rate cuts, targeting up to 300 basis points, according to The Kobeissi Letter cited by BlockBeats. Trump argues the Fed’s current 4.25%–4.5% rate range is overly restrictive, stifling economic growth. However, analysts consider such drastic cuts improbable, expecting a more measured approach, potentially starting with a 25-basis-point reduction in September 2025. Historically, aggressive rate cuts, like those in the 1970s, exacerbated wealth inequality by inflating asset prices while wage growth lagged. Today, the top 0.1% of Americans hold wealth 5.5 times greater than the bottom 50%, with the top 1% owning 51% of U.S. stocks. Further cuts could widen this gap, fueling asset bubbles. Globally, central banks executed 15 rate cuts in May 2025, the largest synchronized easing in over 20 years, signaling a broader shift toward looser monetary policy. The Fed, cautious due to Trump’s tariff-driven inflation risks, has held rates steady since December 2024. Trump’s push for a new Fed chair, potentially announced soon, aims to align monetary policy with his economic agenda. However, replacing Powell, whose term ends in May 2026, risks market volatility and challenges the Fed’s independence. Markets are now assessing the feasibility of Trump’s plans and their implications for inflation, asset prices, and inequality.","images":["https://d2kdcqywr8ua22.cloudfront.net/uploadfile/article/blog/2025082025/08/24/cf6a170e34508addcf5faccdeb0249f4.jpg"],"tags":[],"tradingPairs":[],"quotearticleid":0}