Jerome Powell dismisses Trump's criticism of ‘political' Fed as ‘cheap shot'

Core Viewpoint - The US Federal Reserve, led by Chair Jerome Powell, is facing political pressure, particularly from former President Donald Trump, who has criticized the Fed's independence and its decisions regarding interest rates [1][2][3]. Group 1: Federal Reserve's Independence - Powell strongly refuted claims that the Fed's decisions are influenced by political factors, labeling such accusations as "cheap shots" [3]. - The White House is attempting to reshape the Fed's rate-setting board, including efforts to remove a Biden appointee amid allegations of mortgage fraud [2]. Group 2: Economic Context - The Fed recently implemented its first rate cut since December to address instability in the labor market, despite ongoing inflationary pressures from Trump's tariffs [4]. - Powell highlighted the current economic challenges, noting that inflation risks are skewed upward while employment risks are skewed downward [4]. Group 3: Diverging Views within the Fed - Stephen Miran, a Trump-appointed Fed governor, dissented from other policymakers, advocating for a more significant rate cut, arguing that minor price changes have led to excessive concern [5].