Rising Tensions at the Federal Reserve as Two of Twelve Governors Back Trump's Call for Rate Cuts

Trump's Pressure on the Fed: Throughout his second term, Donald Trump has been urging the Federal Reserve to cut interest rates, but Fed officials have largely resisted this pressure due to concerns over inflation.

Split Vote in July FOMC Meeting: The minutes from the July Federal Open Market Committee meeting revealed a split vote, with two governors advocating for a rate cut, marking significant dissent within the Fed.

Concerns Over Inflation and Tariffs: Fed policymakers are worried about the impact of tariffs on U.S. inflation, leading them to maintain high interest rates despite slight improvements in the unemployment rate.

Potential Successors for Powell: As speculation grows about Jerome Powell's replacement when his term ends in 2026, several candidates, including James Bullard and Christopher Waller, are being considered, with differing views on interest rate policies.