Powell Under Fire as July Rate Cut Odds Jump to 23%
Jerome Powell is facing mounting political and regulatory pressure just as markets begin to raise expectations of a Federal Reserve rate cut in July.
Data from the CME FedWatch tool shows a 23.3% chance the Fed will lower rates at its upcoming meeting—a noticeable uptick fueled by growing calls for monetary easing. Behind the scenes, criticism of Powell is intensifying, with accusations of misleading testimony and demands for his removal gaining traction in Washington.
Former President Donald Trump has publicly blasted Powell’s leadership, accusing him of damaging the economy by refusing to cut rates. At the same time, Fed Governor Christopher Waller has hinted that economic indicators could justify a rate reduction as early as this summer.
The Federal Housing Finance Agency is now urging Congress to investigate Powell for allegedly providing inaccurate information during recent Senate hearings. FHFA Director William Pulte cited concerns over a multibillion-dollar construction scandal and Powell’s overall conduct, which he claims merits dismissal.
Despite the pressure, the Fed remains more likely to hold steady for now, with a 76% probability of no change in July. But institutions like Goldman Sachs say the tide is turning and believe multiple cuts could be on the table before the end of 2025.
As Powell navigates this storm, both his credibility and the Fed’s next steps are under intense scrutiny.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
