Overview

• President Trump delivered a handwritten reproach to Jerome Powell urging drastic interest rate cuts.
• The Fed opted to hold rates steady in early July, stressing uncertainty from tariffs and prioritizing data-driven decisions.
• Legal barriers and FOMC consensus requirements prevent the president from removing Powell or forcing policy changes.
• Trump says he is vetting three or four candidates and has suggested installing a shadow chair to sway markets before a formal replacement.
• Economists warn that politicizing the Fed and pre-announcing a successor could erode confidence in the institution and its next leader.