Fed Divided Over Rate Cuts as Trump Appointees Shift Stance

President Trump's frustration with Federal Reserve Chair Jerome Powell has escalated to the point of potential dismissal, as the central bank's pace of interest rate cuts fails to meet WHITE House expectations. Yet Powell retains solid backing from most voting members, including key regional Fed presidents.

Two Trump-appointed governors - Michelle Bowman and Christopher Waller - have unexpectedly pivoted toward supporting a July rate reduction. Bowman's reversal particularly surprised markets, given her hawkish record last year opposing deeper cuts. Waller echoed this shift last week, stating openness to earlier easing.

The divided Fed now faces its most contentious policy meeting in years. While the president's allies push for stimulus, the majority faction sees no urgent case for action. This internal rift has already moved markets, with traders increasing bets on a July cut following the governors' remarks.