Trump Unveils 'Boiling Frog' Style Interest Rate Cut Pressure, Powell Vows to Fully Serve Term in Private

BlockBeats News, July 25th, according to CNN, U.S. Securities and Exchange Commission (SEC) Chairman Powell has reportedly told several colleagues and allies that he will not succumb to Trump's calls for his resignation, vowing to withstand the unprecedented and multi-pronged attacks from Trump over the coming months for his refusal to cut interest rates. Powell has privately stated that he is staying not only for personal reasons but also because his chairmanship is closely tied to the overall independence of the Federal Reserve, and resigning now would weaken the Fed's long-standing independence from political interference. Powell strongly believes it is his responsibility to uphold this independence.

Powell previously served briefly in the George W. Bush administration and has been known during his over a decade-long tenure at the Fed for his careful, nonpartisan "straight shooter" image, which helped him be nominated by Trump as Fed Chair in 2017. However, this style that earned Trump's appreciation during his first term has now become a weakness for Powell, as Trump has expressed dissatisfaction multiple times with Powell's reluctance to respond to his calls for rate cuts, stating, "It's like talking to a chair, no response."

In recent weeks, the White House has spent a lot of time focusing on the Fed's $25 billion renovation project, launching an investigation into cost overruns and hinting that this could be a reason for Powell's dismissal. This Thursday, Trump intensified the pressure by personally visiting the Fed to inspect the project, with Powell personally accompanying him. During the visit, Trump patted Powell on the back and said, "I just want to see one thing happen, rates must come down." A Trump advisor likened this pressure to "boiling a frog in warm water," stating, "Either Powell jumps out, or he gets cooked."