Overview

• President Trump renewed calls for aggressive rate cuts and attacked Jerome Powell as a “numbskull,” hinting at possible removal within eight months.
• Treasury Secretary Scott Bessent repeatedly confirmed that Trump will not fire the Fed chair, urging markets not to expect any abrupt leadership changes.
• A Reuters poll shows more than 70% of economists fear political interference in the Fed’s decisions, though all respondents predict rates will stay unchanged in July.
• Former Fed Chair Janet Yellen warned that politicizing rate decisions could erode the dollar’s global standing and drive up borrowing costs.
• Despite initial market jitters over firing rumors, U.S. stocks and bonds have largely stabilized ahead of the Fed’s July 29–30 meeting.