Overview
- President Trump criticized Fed Chair Jerome Powell as a “numbskull” and demanded a full percentage point cut to the benchmark interest rate.
- He suggested he may “force something” on the Fed and floated the idea of appointing a temporary “shadow chair” to oversee monetary policy.
- Federal Reserve officials are widely expected to keep rates unchanged at their June 17-18 meeting given ongoing uncertainty over the economic effects of Trump’s tariffs.
- May consumer price index data showed inflation rose 2.4% annually, slightly below forecasts but still above the Fed’s 2% target.
- Trump has yet to rule out replacing Powell and is weighing candidates such as Treasury Secretary Scott Bessent and former Fed Governor Kevin Warsh for the role.