President Donald Trump's public pressure on the Federal Reserve appears to be working, according to a new report.
The Wall Street Journal reported on Tuesday that governors Christopher Waller and Michelle Bowman, both of whom are Trump appointees, are considering dissenting in the next Fed meeting. That would mark the first time in nearly three decades that governors would vote against the chairman.
Both Waller and Bowman support lowering interest rates, which is something Trump has been adamant about throughout his second administration. Chairman Jerome Powell has held off on lowering rates to monitor the impact of Trump's tariff policy on the U.S. economy.
"It feels like the Fed will not escape Trump 2.0 unscathed,” Tim Duy, chief U.S. economist at SGH Macro Advisors, told WSJ. “There’s a feeling that Trump has an influence over every institution sooner or later, and maybe the Fed’s ability to resist it has come to an end.”
Trump has publicly attacked Powell for several months because he refuses to lower interest rates. Recently, Trump traveled to the Federal Reserve headquarters renovation project in an attempt to embarrass Powell. However, Powell turned the tables on Trump and pushed back fiercely against many of Trump's claims.
Powell's former deputy, Richard Clarida, cautioned that the dissent should not be viewed simply as political theatre.
“I would hope that the arguments they make, if they do dissent, will get some respect as well,” said Clarida.