President Donald Trump has frequently expressed his dissatisfaction with the Fed’s “waiting” approach to lowering interest rates under Powell.
Federal Reserve Chairman Powell says there is no Trump pressure to lower interest rates
President Donald Trump has pressured the Federal Reserve to lower interest rates, and Jerome Powell is still saying no.
The Trump administration appears to be pressured Jerome Powell to step down as Federal Reserve Chairman, with one federal agency issued a statement expressing support for his departure.
President Donald Trump, who appointed Powell as Fed Chairman in 2017, has frequently expressed his dissatisfaction with the Fed’s recent “waiting” approach to lowering interest rates, calling for a rapid drop in interest rates from 4.25% to 4.5%.
In June, Trump called Powell a “silly person” who “doesn’t do poor work,” adding that he was called “every name in the book” and was trying to cut interest rates. He added, “Nothing works.”
Powell also fired from management and budget director Russell Vautt, who suggested Powell misunderstood the council about a “prominent” headquarters remodel. Powell has previously defended the project, calling some of the more luxurious explanations “misleading and inaccurate” in his June testimony before the Senate Banking Committee in June.
The administration’s pressure tactics appeared to continue on July 11 by Fannie Mae, director of the Federal Housing and Finance Agency and chairman of the Freddie Mac Committee, William Plute.
Pulte referenced Powell “considering resignation” and “reporting.” When asked to confirm, the Fed refused to comment, but ordered USA Today multiple times.
Pulte’s statement precedes the Central Bank’s July 29-30 meeting. CME FedWatch, which tracks the likelihood of rate reductions based on futures prices, said its chance rate of around 93% after the meeting is stable at 4.25% to 4.5%.
In June, the Fed stabilized interest rates for its fourth meeting, maintaining forecasts for two cuts in 2025. Officials expect this year to reduce the amount from 3.75% to 4%.
Lower fees will help juice the economy and reduce federal debt payments, but Powell says the Fed wants to see how tariffs affect inflation before cutting fees.
Trump in June said he was already looking for a replacement for Powell, but if Powell doesn’t voluntarily resign, he may have to wait. The Supreme Court in May downplayed Trump’s ability to fire Powell, and the Fed is a “uniquely structured, semi-private organization” unlike other independent institutions with members subject to termination as determined by the president.
Contributor: Paul Davidson
