The Powell-pressure cooker about to explode? The fight between Jerome Powell, the president of the federal reserve, and the president US Donald Trump continues to intensify on the question of the drop in the maintenance rate of the American central bank. If Donald Trump has not technically the possibility of dismiss Directly Jerome Powell, the latter is under constant pressure. And today, it is before the members of the House of Representatives of the American Congress that the president of the Fed finds himself, once again, on the political grill.
The key points of this article:
Jerome Powell, president of the Federal Reserve, was faced with intense pressure from Republicans to reduce interest rates. Influential Fed governors, such as Chris Waller and Michelle Bowman, have already expressed their support for a drop in rates, accentuating Powell isolation.
On the drop in Fed guiding rates: Jerome Powell is under pressure from Republicans …
Since the inauguration of Donald Trump To the President of the United States last January, the new president has not stopped Criticize Jerome's indecision «Too late» Powell as to the recovery of the drop in interest rates of the Federal reserve. Indeed, after 3 decreases of these famous guiding rate at the end of 2024these are remained blocked in a fork from 4 to 4.25%. But this Tuesday, June 24, 2025, Jerome Powell and his inaction are under fire of the questions of Republicans of the Financial Services Committee of the Room of Representatives. The president of this committee, the representative French Hillhas once again put pressure on On the patron of the Fed in his preliminary remarks at the hearing of Jerome Powell:
“Under the Trump administration, inflation has dropped (…) and real wages finally experience a new significant growth.
There is still a certain economic uncertainty when the United States is involved in difficult negotiations necessary to guarantee markets more open to American goods and services. But this uncertainty is not without strategy.
An FED official, Governor Waller, explained how a balanced approach, combining potential rate drops and targeted customs duties, could still promote strong economic growth. »»
Extract from the preliminary remarks of the French Hill representative, President of the House Financial Services Committee
… But also released by governors of the Federal Reserve, already favorable to the drop in rate
As the member of the French Hill Congress points out, Jerome Powell is more and more isolated On his refusal to lower the interest rates of the Fed, including within the American central bankers. Indeed, as CNBC reports, two members of the Governors' Council of the Fed, the governors Chris Waller et Michelle Bowmanwould already be favorable to a drop in rates from the next meeting of FOMC (Federal Open Market Committee) which must be held July 30 Next, just over a month. A new drop in guiding rates of the federal reserve, in addition to facilitating banking loan for both individuals and businesses, would be the signal of a more accommodating monetary policy of the US central bank, which would greatly promote so-called «risk-on» assets, such as actions and cryptocurrencies. And some analysts already anticipate that, if this change in monetary policy of the Fed takes place, Bitcoin (BTC) could reach $ 200,000 this year 2025.