Group 1 - The article discusses the potential economic, political, and legal consequences of firing Federal Reserve Chairman Jerome Powell, as warned by Bessent, highlighting a divergence in views within the Trump administration [3] - President Trump has repeatedly criticized Powell and threatened to dismiss him to pressure the Federal Reserve into lowering interest rates, while also raising concerns about the Fed's $2.5 billion office renovation costs [3] - Federal Reserve Governor Waller indicated that a 25 basis point rate cut at the July meeting is a reasonable choice, emphasizing the need for proactive measures given the inflation nearing target levels [3] Group 2 - Waller's comments reveal internal policy disagreements within the Federal Reserve, with some officials, including New York Fed President Williams, expressing concerns about tariffs' impact on inflation and preferring to wait before making any rate cuts [3] - Kevin Walsh, a potential successor to Powell, stated that the Fed's reluctance to cut rates is damaging its credibility, and he supports Trump's push for policy easing [4] - Walsh believes in the independence of the Federal Reserve but argues that continuity is not what the central bank needs at this time, citing a "credibility crisis" faced by the institution [4]