JD Vance Criticizes Fed Chair Powell Over Interest Rate Policy Amid Easing Inflation

Vice President JD Vance has escalated tensions between the WHITE House and the Federal Reserve, publicly challenging Chair Jerome Powell's reluctance to cut interest rates despite cooling inflation. The political undertones of monetary policy are now under scrutiny as the 2024 election looms.

May's inflation data showed a mere 0.2% rise—below analyst expectations—yet the Fed maintained its hawkish stance. Vance's Twitter rebuke highlighted the apparent contradiction: "Why slash rates pre-election but withhold relief now?" This rhetorical jab underscores growing frustration with borrowing costs that continue to strain households and businesses alike.

The feud echoes Trump's historic clashes with the Fed, reviving debates about central bank independence. Market participants watch closely, knowing such political pressure could Ripple through asset classes from Treasuries to cryptocurrencies.