Fed’s Powell Keeps Rates Steady, Trump’s Buddies Not So Much 😅

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The central bank unveiled its official interest rate decision on Wednesday afternoon after a two-day meeting to ponder the mysteries of U.S. monetary policy.

A Tale of Two Feds: Powell Stands Firm, Colleagues Get Feisty

The U.S. Federal Reserve, in a move that surprised absolutely no one, has decided to keep the rates at the 4.25-4.50% level, as per the central bank’s official statement published on Wednesday afternoon. However, two Federal Open Market Committee (FOMC) members, Michelle Bowman and Christopher Waller, had other ideas and dissented from the majority, led by Fed Chair Jerome Powell.

(Michelle Bowman, the lady who thinks a quarter-point cut would make everything better. Nominated to the Fed by Trump in 2018, she’s not exactly a fan of Powell’s steady-as-she-goes approach.)

The decision to hold rates was as predictable as a cat deciding to ignore a laser pointer. The CME FedWatch Tool forecasted today’s outcome with a 97% accuracy, which is about as reliable as a weather forecast predicting rain in a desert. But the real excitement was in seeing which of the Federal Reserve Board Governors were Team Trump and which were Team Powell. The U.S. President has been urging the central bank to cut rates for months, probably because he thinks it will make his hair look even more magnificent.

(Christopher Waller, who joined the Fed in 2009 but was nominated to the Board of Governors by Trump in 2019. He’s the kind of guy who likes to disagree just to keep things interesting.)

So, it’s no shock that Bowman and Waller decided to throw their hats into the ring and vote against Powell’s decision to keep the federal funds rate unchanged. Both have made it clear they’re more aligned with the president’s views on monetary policy, and today, they’ve officially put their money where their mouths are—literally.

“In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent,” the Fed’s official statement reads, with all the excitement of a legal document. “Voting against this action were Michelle W. Bowman and Christopher J. Waller, who preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting.”

What makes this situation particularly noteworthy, according to CNBC, is that it’s the first time in 32 years that multiple governors have publicly disagreed with the prevailing rate decision. But even Bowman and Waller weren’t bold enough to slash rates by three points as the president has been demanding, settling instead for a modest quarter-point reduction. It’s like arguing over whether to add a teaspoon of sugar to your tea when the kettle is already boiling over.

“I call him ‘Too Late,’ he’s always too late,” Trump told reporters shortly before the Fed published its decision. “Even if he does it today.” The president then shrugged his shoulders and conceded, “He probably won’t.” It’s a sentiment that’s as refreshing as finding out your favorite brand of chocolate is out of stock, yet again.

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2025-07-30 23:50