Jerome Powell and the Fed lowered interest rate by 0.25%

Fed lowers interest rates by 0.25 percentage points in first cut since 2024

The Federal Reserve on Wednesday lowered its benchmark interest rate by 0.25 percentage points — its first cut since December — as the U.S. grapples with a stalling labor market and slower economic growth.

The Fed cut reduces the federal funds rate — what banks charge each other for short-term loans — to between 4% and 4.25%, down from its prior range of 4.25% to 4.5%. The last time the central bank eased borrowing costs was in December 2024, when it also trimmed rates by a quarter of a percentage point.

Federal Reserve officials are also penciling in two more rate cuts in 2025, but only one in 2026, according to the central bank's summary of economic projections. That may disappoint Wall Street, with investors before the meeting projecting a total of five cuts over the rest of the year and 2026.

Only one member voted against...he wanted a rate cut of 0.50.

Read more...

Trump announces Interim Federal Reserve Board Appointee

Trump Fill Massive Vacancy, Shocks Fed with Harvard Genius Pick

In a bold move that further solidifies his commitment to sound economic policy, President Donald J. Trump announced the appointment of Dr. Stephen Miran to the Federal Reserve Board, filling the vacancy left by the resignation of Biden-appointed Governor Adriana Kugler.

The liberal media, always eager to undermine President Trump’s successes, will no doubt scramble to downplay this exceptional pick—but the facts speak for themselves. Dr. Miran, a Harvard-educated economist and current Chairman of the Council of Economic Advisors, brings unparalleled expertise and a proven track record of excellence from his service in both the Trump administration’s first and second terms.

President Trump made the announcement on Truth Social, stating:

“It is my Great Honor to announce that I have chosen Dr. Stephen Miran, current Chairman of the Council of Economic Advisors, to serve in the just vacated seat on the Federal Reserve Board until January 31, 2026. In the meantime, we will continue to search for a permanent replacement.

Stephen has a Ph.D. in Economics from Harvard University, and served with distinction in my First Administration. He has been with me from the beginning of my Second Term, and his expertise in the World of Economics is unparalleled — He will do an outstanding job. Congratulations Stephen!”

An Appointee of Biden on the Federal Reserve has dendered her resignation

Fed Governor Announces Resignation, Opening Vacancy on Interest Rate-Setting Committee

"Adriana Kugler did not cite a reason but said she would return to her teaching position at Georgetown University in the fall.

The Federal Reserve has announced that Fed Governor Adriana Kugler is resigning early from her term and will exit the central bank on Aug. 8, creating a vacancy on the central bank’s 12-member interest rate setting committee that President Donald Trump will have an opportunity to fill.

Kugler, an appointee of President Joe Biden whose term was set to expire in January 2026, announced her departure in an Aug. 1 letter to Trump, saying she would return to her teaching post at Georgetown University this fall. She did not give a reason for her resignation.

“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler wrote. “I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market.”

Her exit comes after the Fed voted this week to keep interest rates unchanged, a decision opposed by two Trump appointees, Christopher Waller and Michelle Bowman, who argued for a quarter-point rate cut.

Kugler did not participate in the vote. In recent months, she had voiced support for holding rates steady until the effects of Trump’s new tariffs on inflation became clearer—a stance generally viewed as hawkish."

Read more about it...

The Federal Reserve Board of Governors has seven members. These governors are nominated by the President of the United States and confirmed by the Senate. They serve 14-year terms, with one term beginning every two years. The Board also includes a Chair and a Vice Chair, who are appointed by the President from among the sitting governors and serve four-year terms, according to the Federal Reserve Board.