A second Federal Reserve official has expressed support for cutting interest rates, just months after President Donald Trump began publicly pressuring Fed Chair Jerome Powell to take such action.
Background
In April, President Trump triggered global market instability by imposing sweeping tariffs on nearly all major U.S. trading partners. Though markets rebounded when he later backed off some of his threats, investor uncertainty remains high—especially with no solid trade deal in place with China, which took the biggest hit from the tariffs.
Amid the fallout, Trump has sharply criticized Powell for holding rates steady, even suggesting he should be fired. After the Fed declined to cut rates again this month, Trump called Powell “the worst” and “a real dummy.”
Powell, who chairs the Federal Open Market Committee (FOMC), is one of several central bank officials who vote on interest rate decisions. His current term ends next year.
What’s New
The Fed last reduced interest rates in December. On Monday, Michelle Bowman, a member of the Fed’s Board of Governors and a Trump appointee, said she believes another rate cut should be considered at the upcoming policy meeting in late July.
“The inflationary effects of tariffs may be smaller and more delayed than initially expected,” Bowman said during remarks in Prague.
“If inflation stays under control, I’d support a rate cut at our next meeting.”
Bowman is now the second high-ranking official in under a week to support a rate cut. Christopher Waller, also appointed by Trump, told CNBC on Friday that the Fed should seriously consider lowering rates next month.
“I call these ‘good news’ cuts—when inflation drops close to our target,” Waller said. “We could act as soon as July.”
Where the Fed Stands
In a recent statement, the FOMC reported that the economy continues to grow steadily, unemployment remains low, and labor market conditions are strong—though inflation is still slightly elevated.
“We believe our current policy is well suited to maintain economic stability and respond quickly if conditions change,” Powell said during a press briefing.
Trump, however, remains unsatisfied. After the Fed’s latest decision, he jokingly asked reporters:
“Can I appoint myself to the Fed? I’d do a better job than these people.”
What’s Next
The Fed will meet July 29–30 to decide whether to lower interest rates for the first time this year. With multiple officials now voicing openness to a cut, the July meeting could mark a shift in monetary policy—especially as political pressure from the White House continues to build.
