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Fed Holds Rates; Trump Labels Powell ‘Unorthodox’

7/3/2026

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Story summary
  • Kevin Hassett, National Economic Council director, called Jerome Powell’s continued Federal Reserve (Fed) Board service “extremely unorthodox” because it blocks a Trump-appointed seat.
  • The Federal Reserve (Fed) left its benchmark rate unchanged last month despite President Donald Trump’s repeated calls for steep cuts.
  • Kevin Warsh, Trump-appointed governor and Fed Chair, said inflation stays high but expectations have fallen and the Fed will keep targeting 2% inflation before its July meeting.