Trump Installed Fed Officials Parrot His Wishes

Recent statements from Federal Reserve officials reveal troubling alignments with President Donald Trump’s agenda, particularly in advocating for lower interest rates, which contradicts previously cautious stances. Fed Vice Chair for Supervision Michelle Bowman has openly suggested that adjustments to the policy rate may be necessary soon, downplaying the risks associated with Trump’s tariffs and emphasizing the need to maintain a healthy labor market.

This shift signifies a worrying trend where appointees of Trump—who demands unwavering loyalty from his officials—begin to echo his economic policies. Earlier, Fed Governor Christopher Waller also indicated support for rate decreases, focusing on the idea that inflationary impacts from tariffs might be minor. The suggestions from Bowman and Waller clash with the traditional reluctance of the Federal Reserve to alter rates based on political pressure rather than economic fundamentals.

Despite some Fed officials still favoring a cautious approach, sentiments are changing. Chicago Fed President Austan Goolsbee acknowledged the potential for rate cuts if inflation remains stable in light of recent tariff increases. This indicates an unsettling readiness among certain Fed members to prioritize political concerns over the broader economic picture, which is concerning in light of the escalating Israel-Iran conflict and its possible repercussions on global energy prices.

Trump has repeatedly criticized Fed Chair Jerome Powell for failing to comply with his calls for lower rates, labeling him with derogatory terms. This aggressive rhetoric reflects Trump’s broader strategy to undermine independent institutions, revealing an alarming trend where critical economic decisions may be swayed by political allegiance rather than objective analysis.

As political pressures mount and Fed officials appear to be bending to Trump’s demands, the potential for compromised economic integrity grows. Allowing political influence to dictate monetary policy threatens to destabilize not only financial markets but also the broader economy, ultimately serving the interests of wealthy elites while neglecting the working class.

(h/t: https://edition.cnn.com/2025/06/23/economy/fed-july-rate-cut-trump)