WH: Trump Thinks More Work Needed to Lower Interest Rates

President Donald Trump was happy to see the Federal Reserve cut interest rates by 25 basis points this week but wants to see further reductions in borrowing costs, White House press secretary Karoline Leavitt told reporters Thursday.

"I know there was a quarter-point reduction this past week, and the president was pleased to see that, but he thinks more should be done," Leavitt said.

The U.S. central bank cut interest rates Wednesday, but signaled borrowing costs are unlikely to drop further in the near term as it awaits clarity on the direction of the jobs market, inflation and the overall economy.

Trump has repeatedly criticized Fed Chair Jerome Powell for not cutting rates earlier and more aggressively. He is interviewing candidates to replace Powell, whose term as head of the central bank ends in May.

Leavitt declined to say if Trump could decide on Powell's successor before Christmas, or to give any details about his conversations with candidates for the job. Trump last week said he would make decide early next year.

Asked if the president expected his nominee to cut rates further, Leavitt said, "I think the president has been quite clear about what he believes the Fed should be doing, which is lowering interest rates."

Trump told reporters Wednesday he would meet with former Fed Gov. Kevin Warsh later in the day. He has also identified White House economic adviser Kevin Hassett as a potential leader for the Fed.

Treasury Secretary Scott Bessent, who is leading the search effort, previously said the short list also included Fed Gov. Christopher Waller and Fed Vice Chair of Supervision Michelle Bowman – both appointed during Trump's first term – as well as BlackRock's Rick Rieder.

Hassett, widely seen as the front-runner to succeed Powell, works directly for Trump as director of the National Economic Council.