Trump Targets Fed Chair Powell Amid Push to Name Successor as Rates Hold Steady

The U.S. Federal Reserve maintained interest rates at 4.25%-4.5% for the seventh consecutive meeting, signaling caution amid rising inflation projections. Core inflation is now expected to reach 3.1% by year-end, up from March's 2.8% forecast.

President Trump's public criticism of Chair Jerome Powell intensified hours before the Fed's policy announcement, with the president confirming plans to name a successor nearly a year before Powell's term expires in 2026. Economists warn premature speculation about leadership changes could destabilize markets.

The Fed's revised economic outlook reflects growing concerns about persistent price pressures. Powell emphasized the central bank's readiness to respond to economic shifts, but political tensions underscore the delicate balance between monetary policy independence and executive branch influence.