Overview

• The Federal Open Market Committee opted to maintain the benchmark interest rate at 4.25%–4.50% for the fourth consecutive meeting, citing unclear inflationary impacts from new trade levies.
• In Truth Social posts, President Trump branded Powell “Too Late” and accused him of costing the country hundreds of billions by refusing to cut rates.
• Powell reiterated that the Fed’s “wait-and-see” approach will persist until incoming data sheds light on how tariffs influence price stability and economic growth.
• Sen. Bernie Moreno and FHFA Director Bill Pulte publicly criticized the Fed’s decision and called for Powell’s resignation, intensifying Republican pressure on the Fed chair.
• Trump has indicated he may replace Powell when his term ends in May 2026, with Scott Bessent, Kevin Hassett, Judy Shelton and Kevin Warsh among the leading contenders.