Overview

• Jerome Powell told Congress the Fed will delay any rate cuts until it sees clear evidence of tariff-driven price increases this summer
• The central bank has kept its benchmark federal funds rate at 4.25–4.5 percent since December 2024
• At a NATO summit in The Hague on June 26, President Trump branded Powell “terrible” and said he’s identifying three or four potential successors
• Reported front-runners for the next Fed chair include former governor Kevin Warsh, NEC director Kevin Hassett, governor Christopher Waller and Treasury Secretary Scott Bessent
• The escalating public feud underscores growing political pressure on the Fed’s independence as it balances inflation risks against economic growth