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
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 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
Federal Reserve Chair Jerome Powell affirmed the incompatibility of simultaneously lowering inflation and implementing substantial tariffs. He warned that sustained tariff increases would likely cause inflation, slower economic growth, and unemployment. The inflationary impact’s duration remains uncertain, depending on tariff magnitude and the speed of price adjustments. Successfully mitigating persistent inflation hinges on the scale of tariff effects and maintaining stable long-term inflation expectations.
Read More
President Trump’s threat to fire Federal Reserve Chair Jerome Powell, following his imposition of tariffs, caused a significant stock market downturn and drew sharp criticism, including a Wall Street Journal editorial labeling the tariffs a major economic blunder. Faced with this backlash and market instability, Trump retracted his threat, effectively conceding that Powell holds considerable influence over the economy. This reversal was interpreted by some as a humiliating retreat by the President, highlighting the economic fallout from his actions. Trump’s subsequent damage control attempts included blaming the media.
Read More
President Trump’s continued attacks on Federal Reserve Chair Jerome Powell, coupled with ongoing tariff uncertainty, sent US stocks and the dollar plummeting on Monday. The Dow dropped over 1,190 points, while the dollar reached a three-year low, reflecting investor concerns about the administration’s unconventional approach to economic policy. This market downturn comes as Powell warned of the inflationary and growth-stunting potential of Trump’s tariffs, further exacerbating existing anxieties. The weakening dollar and rising gold prices signal a loss of confidence in US economic stability, prompting investors to seek safe haven assets.
Read More
President Trump publicly urged immediate interest rate reductions globally, marking a renewed confrontation with the Federal Reserve. His comments, delivered at the World Economic Forum, followed his past criticisms of Fed Chair Jerome Powell and his assertion of influence over monetary policy. While the stock market reacted positively, the Fed has consistently maintained its independence from political pressure. Trump intends to communicate directly with Powell, despite lacking direct statutory control over the central bank.
Read More
Federal Reserve Chair Jerome Powell has stated he will not resign from his position, even if asked to do so by President-Elect Donald Trump. This declaration came during a press conference following a meeting of the Federal Reserve, where a reporter pointed out that some of Trump’s advisors have suggested Powell should step down. Powell’s firm “No” response to this question was followed by a clarification that he does not believe he is legally obligated to resign.
Further inquiries from journalists focused on the President’s authority to dismiss or demote Powell. The Fed Chair definitively stated that such actions are “not permitted under the law”.… Continue reading
John Q. Hosedrinker 
Matt Underwood