Two governors rebel as Fed keeps rates steady amid Trump pressure

(The Center Square) – The Federal Reserve on Wednesday held its key interest rate steady as expected, but two of President Donald Trump's appointees voted to lower rates.

The Federal Open Market Committee, which sets rates, voted to keep rates flat at 4.25% to 4.5%. Trump appointed FOMC governors Michelle Bowman and Christopher Waller wanted to cut the rate by 1/4 percentage point.

Chairman Jerome Powell was joined by governors John Williams, Michael Barr, Susan Collins, Lisa Cook, Austan Goolsbee, Philip Jefferson, Alberto Musalem and Jeffrey Schmid in voting to keep rates steady.

Even before the Fed's decision Wednesday, Trump was pushing Powell for cuts after morning economic growth figures came in better than expected.

"'Too Late' MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!," the president wrote on Truth Social.

Trump launched a "nasty" pressure campaign to get Powell and the Federal Open Market Committee to lower interest rates, but so far the president has been unsuccessful.

The Fed has taken a wait-and-see approach on interest rates, citing Trump's broad-based reciprocal tariffs as a reason for caution.

Last week, Trump personally toured an over-budget renovation project at the Federal Reserve and patted Powell on the back while telling reporters it was time to cut rates.

Trump previously called Powell to the White House for a meeting. After that May meeting, Powell issued a rare statement saying that FMOC decisions would be based "solely on careful, objective, and non-political analysis."

Since returning to the White House for his second term, Trump has called Powell every name in the book. One of the president's favorites for Powell has been "numbskull." He's also given Powell the nickname "Too Late" for not cutting interest rates as fast as Trump would like.

Powell has largely ducked Trump's criticism. When Trump criticized cost overruns on the remodel, the Fed chairman referred the matter to the central bank's inspector general.

Trump has wanted to fire Powell for years, but hasn't taken action.