Overview

• Trump shared a Sharpie-scrawled note urging Powell to slash rates to 1%–2%, accusing the Fed of costing the US “a fortune”
• He told reporters he will only appoint a successor committed to immediate cuts and Treasury Secretary Scott Bessent said a nomination could come as soon as October
• At a conference in Portugal, Powell defended the Fed’s independent, wait-and-see approach while citing uncertain inflation effects from Trump’s tariffs
• A late-May Supreme Court ruling confirmed that the president cannot remove the Fed chair without cause, strengthening Powell’s position
• The Fed has maintained its federal funds rate at 4.25%–4.50% since December as inflation cooled and awaits fresh data before adjusting policy