Powell faces a divided Fed on interest rates

The Federal Reserve held interest rates steady last month, with 16 of 18 officials supporting the move, according to meeting minutes released Wednesday.

Two members dissented, pushing for an immediate cut. Officials kept the benchmark rate at 4.25% to 4.5% while weighing the impact of tariffs on inflation.

Fed Chair Jerome Powell faced political pressure from President Donald Trump to lower borrowing costs but held the benchmark rate at 4.25% to 4.5% as officials debated tariff impacts on inflation.

Most policymakers warned inflation risks outweighed job concerns, while dissenters argued tariff-driven price spikes would be temporary. 

Since then, weaker job growth data has strengthened the case for rate cuts, supported by Governors Christopher Waller and Michelle Bowman. 

Powell now faces a divided Fed ahead of its September 16–17 meeting, with competing views on when to adjust rates.

His eighth and final Jackson Hole summit speech will take place on Friday.

Meanwhile, President Trump is weighing whether to fire Federal Reserve Governor Lisa Cook after housing chief Bill Pulte accused her of mortgage fraud. 

Pulte claimed Cook listed two homes as her primary residence in 2021 mortgage applications. 

Trump demanded her resignation online, but Cook vowed to stay and defend her record.