Federal Gathering in July: Latest Insights and Expert Opinions
In the world of economics, the July Federal Reserve (Fed) meeting was a hot topic, with the Kiplinger team providing live updates and expert analysis on its potential impact on the economy. However, the meeting was not just about interest rates.
The focus of President Trump's comments has expanded to include calls for Federal Reserve Chair Jerome Powell to resign. The comments are not limited to interest rates but also encompass the handling of the ongoing $2.5 billion renovation of the Fed's headquarters by Chair Powell.
Despite President Trump's calls, the Federal Open Market Committee (FOMC) did not heed them in their latest policy decision. The FOMC did not cut interest rates at the July meeting, and there was no confirmation on a September rate cut either. The impact of the Federal Reserve's decisions on mortgage rates and its implications for homebuyers in 2025 were not discussed during the meeting.
UBS Global Research economist Abigail Watt has commented on the situation, stating that the comments from President Trump have broadened to calls for Chair Powell to resign. However, the Kiplinger team did not discuss potential alternatives to Jerome Powell as Fed Chair or the comments from UBS Global Research economist Abigail Watt during their live reporting.
It is important to clarify that the Federal Reserve Chair is nominated by the President of the United States from among the existing members of the Federal Reserve Board of Governors and must be confirmed by the Senate. The Chair’s term is four years, but they also remain a member of the 7-person Board of Governors, whose members serve 14-year terms, staggered and set by law.
In the specific case of replacing Jerome Powell, whose current chair term ends in May 2026:
- The administration begins a formal process to identify Powell’s successor, anticipating his departure at the term’s end.
- The President selects the new Chair and submits the nomination to the Senate for approval. This process involves vetting many candidates both inside and outside the Federal Reserve.
- The new Chair begins a 4-year term while continuing as a governor on the Board.
This sequence applied when Powell was appointed in 2017 by President Trump and would similarly apply in selecting his successor. Powell remains Chair until his official term expires unless extraordinary legal grounds arise for removal, which is highly unlikely.
In the meantime, the situation regarding the potential replacement of Jerome Powell as Fed Chair was not addressed during the July Fed meeting. The Kiplinger team did not provide any updates on the ongoing calls for Jerome Powell to resign during their live reporting.
As the economic landscape continues to evolve, the role of the Federal Reserve and its Chair, Jerome Powell, remains a subject of ongoing discussion and scrutiny.
- The calls for Federal Reserve Chair Jerome Powell to resign have expanded beyond discussions about interest rates, encompassing his handling of the $2.5 billion renovation of the Fed's headquarters as well.
- The potential alternatives to Jerome Powell as Fed Chair, as suggested by UBS Global Research economist Abigail Watt, were not discussed by the Kiplinger team during their live reporting, focusing instead on the July Federal Reserve meeting's impact on the economy.
