Overview

• President Trump intensified public attacks on Fed Chair Jerome Powell, accusing him of delaying rate cuts that he claims would save the government hundreds of billions in debt-service costs.
• He has pre-announced a shortlist of potential successors—including Scott Bessent, Kevin Warsh, Michelle Bowman and Christopher Waller—and is weighing a 'shadow chair' role to influence policy before Powell’s term ends.
• Federal Reserve officials held their benchmark rate steady in June, citing tariff-driven uncertainties and the need for more data on inflation and employment.
• Market analysts caution that political meddling in monetary policy could unsettle rate expectations, increase market volatility and raise borrowing costs.
• Legal safeguards such as staggered seven-year governor terms, the 12-member FOMC voting structure and Supreme Court precedents constrain any presidential effort to force central bank decisions.