Trump’s Federal Reserve Chair Candidates Push to Limit Quantitative Easing Despite His Call for Lower Rates

Federal Reserve chair candidates under U.S. President Donald Trump are forming a consensus around restricting the central bank’s use of quantitative easing (QE), according to BlockBeats.Trump has repeatedly signaled that he wants lower interest rates, but the candidates he is considering for the top Fed role support curbing the size and scope of QE, creating a notable policy divide.Fed leadership clash intensifies ahead of 2025 transitionTrump has continued to criticize current Fed Chair Jerome Powell, whose term expires in May. He expects to appoint a successor who aligns more closely with his views, but the candidates’ position on QE diverges from Trump’s preference for looser monetary policy.The potential nominees are reportedly discussing limits on the Fed’s balance sheet and financial asset holdings, reflecting a more conservative approach to emergency monetary tools.Possible shift in recession playbookWith the Fed’s cautious stance on QE gaining influence, analysts say the central bank may shift its strategy for dealing with future recessions.Instead of large-scale asset purchases, a new Fed leadership could prioritize tighter balance-sheet management even during periods of economic stress — a move that would represent a significant break from the post-2008 policy era.