Powell under pressure to lower rates, Trump wants cuts, FOMC divided

From CNBC: 2025-06-23 16:00:00

Federal Reserve Chairman Jerome Powell faces pressure to lower interest rates, with President Trump and White House officials urging cuts. Fed Governor Michelle Bowman and Governor Christopher Waller have expressed support for a July rate cut, causing market speculation and potential division within the Federal Open Market Committee.

Trump’s call for significant rate cuts is unlikely to be met, as Fed Governor Waller advocates for a gradual approach. The Fed’s mandate is to stabilize inflation and employment, not manage federal debt. Market pricing favors a rate cut in September rather than July, with FOMC members divided on the path and extent of cuts. Following a political agenda could risk the economy and the Fed’s reputation.

Read more: Powell speaks on Capitol Hill this week with politics front and center