Trump urges Fed board to usurp chair's power

WASHINGTON — President Donald Trump called for the Federal Reserve's Board of Governors on Friday to usurp the power of Fed Chair Jerome Powell, criticizing the head of the U.S. central bank for not cutting short-term interest rates.

The Fed has the responsibility of stabilizing prices and maximizing employment. Powell held its benchmark rate for overnight loans constant this year, saying Fed officials needed to see what effects Trump's massive tariffs have on inflation. On social media, Trump called Powell "stubborn."

Two of the seven Fed governors, Christopher Waller and Michelle Bowman, said Friday they see the tariffs as having a one-time effect on prices and the job market as most likely softening. As a result, the two dissented at the Fed meeting Wednesday and pushed for slight rate cuts.

The Fed announced Friday that governor Adriana Kugler will step down next week, opening up a spot on the central bank's powerful board that Trump will be able to fill.