Fed Sees Rare Dual Dissent Amid Political Pressure

President Donald Trump has increased public pressure on Federal Reserve Chair Jerome Powell, urging the Fed’s Board of Governors to override Powell’s authority due to a lack of interest rate cuts, particularly in response to recent tariffs. At the latest Fed meeting, governors Christopher Waller and Michelle Bowman dissented, advocating for rate cuts and arguing tariffs have only a one-time effect on prices. Governor Adriana Kugler announced her resignation, opening a vacancy for Trump to fill on the board. Despite political and internal pressure, Powell has kept benchmark rates steady, awaiting more data on the economic impact of tariffs. Outside analysts, including HSBC's James Pomeroy, predict the Fed may still cut rates multiple times in response to mixed economic signals. The recent dual dissent highlights increased politicization in central bank decision-making.