Divisions Within the Federal Reserve on Interest Rate Cuts Intensify: Powell's Team at Odds with Trump

Federal Reserve Chairman Jerome Powell is facing pressure from former President Donald Trump, who has returned to the White House and is dissatisfied with the delayed interest rate cuts.

Trump has expressed frustration with Powell's slow pace of rate cuts and even considered replacing Powell this summer. However, despite the pressure, most members of Powell's policy team still support his position.

According to the Wall Street Journal, while several committee members appointed by Trump support a rate cut in July, most of the 12 voting members of the Federal Reserve still tend to favor keeping interest rates unchanged.

Tensions within the Federal Reserve are escalating. Ahead of the July policy meeting, there may be divisions within the committee. On one hand, Trump appointees Michelle Bowman and Christopher Waller have expressed a willingness to cut rates.