Fed Holds Interest Rates in Split Vote as Trump Leans on Powell
The governors of the Federal Reserve have decided to maintain a target lending rate of 4.25% to 4.5% for a fifth consecutive meeting in a 10-2 vote. The news follows a sometimes tense July 24 visit by President Donald Trump to Fed chairman Jerome Powell at the agency’s Washington headquarters, which are undergoing renovations.
Trump decried the ballooning cost of the $2.5 billion project and has frequently criticized and threatened to replace Powell, whose term expires in May 2026. Trump believes a rate cut is long overdue.
“We have a man who just refuses to lower the Fed rate,” Trump told reporters following last month’s meeting. “Maybe I should go to the Fed. Am I allowed to appoint myself? I’d do a much better job than these people.”
Powell, whom Trump appointed in 2018, voted in favor of maintaining the target rate. Voting against were two other Trump appointees, Michelle Bowman and Christopher Waller; the 13th governor was not present.
“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook,” a statement from the Fed reads, in part. “The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.”
