Federal Reserve Chair Jerome Powell testified that the central bank would have eased monetary policy if not for President Trump’s tariff plan. Powell stated that the Fed’s decision to hold rates steady was influenced by the increased inflation forecasts resulting from the tariffs. Despite pressure from the White House, the Fed has held the key borrowing rate steady, and Powell acknowledged the potential for future rate adjustments depending on economic data. He also stated that he could not comment on the likelihood of a rate cut in July.
Read More
The U.S. dollar has experienced its worst start to a year since 1973, primarily due to President Trump’s trade policies, concerns about growing public debt, and questions surrounding the Federal Reserve’s independence. The dollar’s decline coincides with the Senate’s consideration of Trump’s tax-cutting bill, which is projected to significantly increase the deficit. Trump’s approach to trade, characterized by reciprocal tariffs and pressure on the Fed to lower interest rates, has contributed to the dollar’s weakness. Furthermore, Trump has openly criticized Federal Reserve Chair Jerome Powell, raising concerns about the central bank’s independence and potentially influencing monetary policy, which could further erode the dollar’s value.
Read More
Germany and Italy are facing calls to repatriate a combined $245 billion in gold stored in the Federal Reserve due to concerns over the safety of their reserves. Politicians and advocacy groups are worried about the potential impact of US political interference, particularly given former President Trump’s criticism of the Federal Reserve. Germany and Italy hold the second and third largest gold reserves globally, with significant portions stored in the US, prompting calls for increased financial sovereignty. These concerns are amplified by worries about the Federal Reserve’s independence and the perceived risks associated with storing gold abroad under the current political climate.
Read More
Bill Pulte, the Trump-appointed director of the Federal Housing Finance Agency (FHFA), publicly demanded Federal Reserve Chair Jerome Powell’s resignation for failing to lower interest rates, citing negative impacts on the housing market. Pulte’s campaign, amplified by President Trump on TruthSocial, accused Powell of economic mismanagement and harming American interests. This intra-governmental conflict coincided with other Republican divisions, particularly concerning the Israel-Iran conflict. The situation highlights the tension between the executive branch and the Federal Reserve’s independence, especially concerning the legally complex process of removing a Fed chair.
Read More
The Federal Reserve held interest rates steady at 4.25 to 4.5 percent, citing continued economic expansion, low unemployment, and elevated inflation as justification. This decision comes despite pressure from President Trump, who criticized Chair Jerome Powell and even suggested appointing himself to the position. The FOMC stated its commitment to maximum employment and 2 percent inflation, maintaining the current rate to support these goals. Powell defended the decision, emphasizing the FOMC’s aim for a strong economy with price stability, while acknowledging ongoing monitoring of economic data.
Read More
In a stark economic forecast, the Federal Reserve projects aggressive stagflation for the remainder of 2025, anticipating 3 percent inflation, a 1.4 percent GDP decline, and 4.5 percent unemployment. This projection follows the Trump administration’s consideration of increased aid to Israel and the passage of the “One Big Beautiful Bill Act,” which significantly increases the national deficit. Fed Chair Powell reiterated that the current economic downturn stems directly from President Trump’s tariffs. The Fed maintains its current interest rate policy despite the projected stagflation.
Read More
In a White House meeting, Federal Reserve Chair Jerome Powell rebuffed President Trump’s pressure to lower interest rates, reiterating his commitment to objective, non-political decision-making based on economic data. Powell emphasized that the Fed’s policy will be determined by incoming economic information and its implications for the economic outlook. Trump, however, argued that the Fed’s current interest rate stance disadvantages the U.S. economically relative to other nations, particularly China. This meeting follows Trump’s previous attempts to influence the Fed’s monetary policy, including threats to remove Powell, a move deemed legally impossible by the Supreme Court.
Read More
In a thinly veiled rebuke to President Trump, Federal Reserve Chair Jerome Powell urged Princeton graduating students to defend democracy, emphasizing the importance of public service and integrity. Powell’s speech, delivered days after the Supreme Court affirmed the Fed’s unique structure and independence from presidential interference, coincided with Trump’s attacks on the institution and funding cuts to universities. He lauded American universities as a national asset under threat and challenged students to preserve and strengthen democracy throughout their careers. Powell’s remarks highlight the ongoing tension between the Trump administration and independent institutions.
Read More
Despite Federal Reserve Chair Powell’s warning of potential stagflation due to tariffs, Trump claims the opposite is occurring, citing decreased energy costs and inflation. Trump’s assertions directly contradict Powell’s concerns about rising inflation, slower growth, and increased unemployment resulting from the tariff policy. This stark disagreement highlights a significant tension between the Trump administration and the Federal Reserve regarding the economic impact of tariffs. Trump’s repeated attacks on Powell underscore the deep divisions over economic policy.
Read More
The Federal Reserve’s stagflation warning dominated the discussion, alongside concerns about Donald Trump’s aggressive trade rhetoric toward China. Experts highlighted the significant risk these factors pose to the U.S. economy. Nicolle Wallace framed the situation as the economy being held captive by a single individual’s unpredictable actions and beliefs. Contributors included economist Justin Wolfers, former Congressman David Jolly, and Flexport CEO Ryan Petersen.
Read More
John Q. Hosedrinker