Fed Dissent Sparks Market Uncertainty as Trump Criticizes Powell

The Federal Reserve's rare 9-2 vote to maintain interest rates has exposed growing divisions within the central bank, with former President Donald TRUMP seizing on the dissent to amplify his criticism of Chair Jerome Powell. Two governors broke ranks, citing concerns over cooling job growth and the need for preemptive policy adjustments.

Trump's Truth Social outburst—labeling Powell a "stubborn MORON"—coincides with mounting pressure for rate cuts as economic indicators soften. The public split marks the first significant Fed disagreement in three decades, injecting volatility into markets already pricing in potential September easing.

Vice Chair Michelle Bowman framed her dissenting vote as an insurance policy against labor market deterioration, while markets parse every signal for clues on crypto liquidity conditions. Digital assets traditionally thrive in dovish monetary environments, making this Fed schism particularly consequential for blockchain investors.