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Trump Escalates Attacks on Fed Chair as Treasury Denies Firing Plans

Fed officials are poised to hold rates at 4.25–4.50% at next week’s meeting, testing the boundaries of central bank autonomy against presidential pressure.

U.S. President Donald Trump walks on the south lawn of the White House and points up at the new flag on July 13, 2025.
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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.