Overview

• President Trump has repeatedly criticized Jerome Powell’s rate decisions, labeling him “numbskull” and demanding a one percentage point cut.
• The Federal Open Market Committee left its benchmark rate at 4.25%–4.50% for the fourth time this year.
• Trump has publicly floated potential Fed chair contenders including Scott Bessent, Kevin Hassett, Judy Shelton and Kevin Warsh.
• Jerome Powell defended the Fed’s data-driven policy, emphasizing its goal of a strong economy, stable labor market and price stability.
• Observers warn sustained White House pressure risks eroding the Federal Reserve’s independence.