Powell defies economy evidence, leaves interest rates high

As expected, Jerome Powell, the chair of the Federal Reserve board of governors, on Wednesday left the interest rate unchanged, keeping the 4.25%-4.5% goal he’s demanded since the first of the year.

President Donald Trump has been calling for him to lower it.

And the pressure for a reduction, which likely would give the Trump economy another boost, grew earlier in the day when the government announced the second quarter GDP was 3%, “way better than expected.”

Would love to hear how Jerome Powell is going to spin not lowering interest rates now… pic.twitter.com/4nLquFxaZE

— Joe Concha (@JoeConchaTV) July 30, 2025

There have been pressure campaigns for Powell to quit as well as pushes for Trump to fire him.

But Powell no longer has a stranglehold on the board, as two governors, Christopher Waller and Michelle Bowman, voted for a quarter-point cut.

There it is…

2 Fed governors dissent against Powell.
Waller and Bowman. First time in 30+ years.

Both hoping to be the next Fed Chair. Not even the Federal Reserve can withstand the power of Trump’s political influence. pic.twitter.com/Mt6FLhkhWU

— Geiger Capital (@Geiger_Capital) July 30, 2025

That dissent had not appeared in the Fed’s decisions in decades.

Powell also has been under fire for a renovation project at the agency’s headquarters that was supposed to cost $1.8 billion, but now is estimated to hit taxpayers for $3.1 billion.

All other economic indicators, job creation, inflation, trade, and more, have been greatly better during the Trump economy than during Joe Biden’s administration, when inflation reached past 9%.