On Wednesday, Chair Jerome Powell announced that the Federal Open Market Committee (FOMC) would once again leave the Fed Funds Rate unchanged, a move widely expected, though certainly not what President Trump was hoping for. Fed governors Chris Waller and Miki Bowman dissented, both voting for a quarter-point cut. I, for one, was not expecting any rate cut at all.
This marks the fifth straight meeting where the rate has been parked in the 4.25% to 4.50% range, stuck tighter than a jar of pickles in the back of your fridge.
For seven months now, markets, pundits, and social media have been buzzing with the same question: “When will the Fed finally cut rates?” No one has been louder or more colorful about this than President Trump.
Never in modern history has a Fed Chair faced such an open, relentless pressure campaign, and Powell seems to be handling it like he is wearing top-grade noise-canceling headphones.
As Powell has reminded anyone willing to listen, the Fed’s job is to balance its dual mandate of maximum employment and stable prices, not to respond to every presidential tweet. In his press conference, Powell struck a tone more hawkish than many expected and firmly refused to promise a cut at the next meeting.
For now, Powell & Co. are wisely waiting to see how new tariffs and other market risks shake out before making their next move. In other words, the Fed is keeping its hands on the wheel, even if someone is yelling.