Overview

• President Trump shared a handwritten memo on Truth Social Monday accusing Powell of costing “the USA a fortune” and urging the Fed to slash rates to between 1% and 2%.
• Fed Chair Jerome Powell has ruled out stepping down early and reaffirmed that rate decisions will follow incoming economic data, keeping the benchmark at 4.25–4.50% for a fourth meeting.
• White House officials, led by Treasury Secretary Scott Bessent, are weighing early nomination of a successor or “shadow” chair with names under consideration including Kevin Warsh, Kevin Hassett and Scott Bessent.
• After threats to fire Powell unsettled bond markets, the administration pivoted to insults and public demands as its primary leverage over monetary policy.
• Two Trump-appointed Fed governors, Christopher Waller and Michelle Bowman, have signaled openness to a July rate cut, but most officials remain cautious in the face of trade-driven inflation risks.