Jerome Powell defies Trump one last time, holding rates steady: ‘The facts have moved decisively in the hawkish direction,’ top economist says

WASHINGTON, DC - JUNE 25: Fed Chair Jerome Powell testifies before the Senate Committee on Banking, Housing, and Urban Affairs during a hearing to "examine the Semiannual Monetary Policy Report to the Congress" on Capitol Hill on June 25, 2025 in Washington, DC. Powell says that the central bank will wait for clearer economic signals on the effects of President Donald Trump's tariffs on the economy before cutting interest rates, despite pressure from the President and divisions among Fed officials. (Photo by Kent Nishimura/Getty Images) (Credit: Kent Nishimura—Getty Images)

The Federal Reserve held interest rates steady on Wednesday in what is very likely Jerome Powell’s final policy decision as chair, leaving the Federal funds rate in the range of 3.5% to 3.75% for a third meeting in a row and defying President Trump’s persistent demands to sharply lower rates. 

But beneath the headline decision, four striking dissents reveal a committee pulling in opposite directions just weeks before Kevin Warsh, Trump’s nominee, is expected to take over as chair.