🚨 Tensions Rise Inside the Fed: Two Governors Break Ranks, Back Trump’s Push for Rate Cuts 🚨
For the first time in 30+ years, the U.S. Federal Reserve is facing a major internal split. Minutes from the July 29–30 FOMC meeting revealed that two governors—Michelle Bowman & Christopher Waller—voted for cutting rates, echoing Donald Trump’s persistent demands.
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⚖️ The Fed’s Dilemma: Inflation vs. Jobs
• Most policymakers held rates steady at 4.25%–4.5%, prioritizing inflation control.
• Bowman & Waller dissented, warning that:
• Inflation (excluding tariffs) is near target.
• Labor market momentum is fading.
• High rates risk dragging down growth in 2025.
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📰 The Biggest Dissent in Decades
Investor Scott Melker (“Wolf of All Streets”) called this the largest Fed governor split in 30 years.
• Trump has repeatedly attacked Fed Chair Jerome Powell, blaming him for blocking growth.
• Powell’s term ends in May 2026, but he faces political pressure, legal threats, and open speculation about his removal.
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👀 Who Could Replace Powell?
Ahead of Powell’s Jackson Hole speech (Aug 22), rumors swirl:
• James Bullard – Ex-St. Louis Fed president, favors 100 bps cut in 2026.
• Christopher Waller – Current Fed governor, respected inflation forecaster.
• Kevin Hassett, Kevin Warsh, Marc Sumerlin – All Trump-aligned critics of high rates.
Treasury Sec. Scott Bessent says there are 11 strong contenders in play.
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🔑 Why Crypto Cares
• Rate cuts = weaker USD, higher liquidity → bullish for risk assets.
• If Trump succeeds, institutional & retail capital could flood into Bitcoin and altcoins.
• Many in the crypto community view persistent inflation as a tailwind for digital assets.
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📌 Stay tuned: Powell’s Jackson Hole address could set the tone for both Wall Street and Crypto markets.
#Fed #TRUMP #Powell #Fed #TRUMP #Powell #
