If the vast majority of the twelve members of the monetary policy committee share the opinion of the president of the Fed not to lower the rates, the governors Michelle Bowman and Christopher Waller (appointed to their post during the first mandate of Donald Trump) expressed their criticisms on the position of the Central Bank.
Jerome Powell, à Washington DC, le 30 juillet 2025 ( GETTY IMAGES NORTH AMERICA / CHIP SOMODEVILLA )
Discord within the Fed. Two officials of the Federal Reserve posted their opposition to the decision to maintain unchanged rates on Friday, August 1 at the last monetary policy, believing that too late decrease may weigh on economic activity and employment.
In two separate declarations, the governors Michelle Bowman and Christopher Waller estimated that by maintaining the rates “in a slightly restrictive position”, the Fed took the risk of slowing American economic activity a little more. These two officials both pronounced themselves in favor of a drop in rates on Wednesday, when the central bank of the first world economy decided to leave them as it is for the fifth consecutive time.
Such opposition had not been seen for over 30 years.
The vast majority of the twelve members of the monetary policy committee had estimated that it was still too early to move them, the time to see clearly on the economic repercussions of President Donald Trump’s protectionist offensive.
The new import taxes may, according to experts, risk slowing exchanges, increasing the costs of businesses and prices paid by consumers and resulting in a slowdown in the global economy.
“I think that a delay” in monetary policy “risks leading to deterioration of the labor market and an additional slowdown in economic growth,” said Michelle Bowman, in her press release.
On the contrary, a drop in rates would have “preventive protected” the economy and the labor market, she said.
His colleague Christopher Waller
Considers that the wait -and -see approach is “excessively prudent”.
“We can lower the rates now and see as the data evolve,” they argue. The two officials had warned before the meeting that they were in favor of a drop.
Powell qualified of all names
President Donald Trump, who tirelessly claims a decrease in interest rates, treated his social network Truth on Friday morning the boss of the Fed Jerome Powell of “stubborn stupid”. “If he continues to refuse (to lower the rates)”, the other Fed officials “must take control,” he wrote. The day before, the president had described the boss of the Fed as “stupid”.
Dissident governors had been propelled to their post during Donald Trump’s first visit to the White House. Ms. Bowman was recently appointed, on the initiative of the Head of State, vice-president of the Fed responsible for supervising the banking system. Mr. Waller is seen as a possible successor by Mr. Powell, continuously criticized by President Trump.