Trump Says Rate Cut Will Be Litmus Test For New Fed Chair

President Donald Trump indicated he would judge a new Federal Reserve chair by whether they immediately move to cut interest rates.

Trump responded “yes” when asked in an interview with Politico if a quick reduction of borrowing costs would be a litmus test for his handpicked central bank leader.

“Yes. Well, this guy too ... should too,” Trump told Politico in the interview released Tuesday, referring to current Fed Chair Jerome Powell. “I think he’s a combination of not a smart person and doesn’t like Trump.”

Trump’s comments were a key signal to potential new ...